Even though struggling Coach Inc.’s sales rose 13% in the third quarter, the accessories merchant announced Tuesday that it will bag more than 300 positions worldwide, representing about a 10% decrease in its global corporate staff.
Coach said the “series of operational efficiency initiatives” are focused on creating an agile and scalable business model, and that it expects to incur pre-tax charges associated with these actions of approximately $65-$80 million.
“These actions will allow us to emerge as a brand-led company with fewer layers, larger spans of responsibility and a consistent global voice across merchandising and marketing,’ said Coach CEO Victor Luis.
With these changes, Coach President and Chief Operating Officer Gebhard Rainer and David Duplantis, Coach’s President, Global Marketing, Digital and Customer Experience, will be leaving the company.
During the company’s third-quarter earnings call, Luis praised Gebhard for his work on the successful integration of the Stuart Weitzman brand over the last year, and most recently for his leadership in its restructuring and efficiency initiatives.
Luis also said Duplantis had made significant contributions to Coach over his 18 year tenure and role spanning North America merchandising, ecommerce and digital and global marketing. Duplantis was a key player in building Coach into a leading global lifestyle brand, establishing it digital footprint, and most recently in its brand transformation, Luis said.
Coach also made changes to streamline and reinforce its leadership team.
Andre Cohen has been promoted to President, North America and Global Marketing, adding North America wholesale as well as global marketing, customer experience and digital to his responsibilities.
Todd Kahn has been promoted to President, Chief Administrative Officer and Secretary and will expand his scope to include information technology, supply chain, global environments and procurement.
In addition, Diane Mahady has assumed the role of Global Head of Merchandising for the Coach brand. Mahady will oversee merchandising for the entire Coach portfolio, including women’s, men’s and licensed categories.