Coach changes name to Tapestry, shares sink

Coach (NYSE:COH) said Wednesday it will change its name to Tapestry, as the maker of luxury handbags and apparel expands beyond its namesake brand.

The New York-based company will adopt its new name and trade under the ticker symbol TPR beginning Oct. 31. CEO Victor Luis said Coach’s new corporate identity reflects its acquisitions of Stuart Weitzman and Kate Spade.

“We are now at a defining moment in our corporate reinvention, having evolved from a mono-brand specialty retailer to a true house of emotional, desirable brands, all leveraging our strong operational foundation,” he said.

Luis added that Coach’s brands will enter new fashion categories and markets.

Wall Street was skeptical of the name change. Shares dropped 2.2% to $39.12 in recent trading.

Coach Tapestry logo FBN

In recent years, Coach has sought to revitalize the company’s high-end image and boost profits in the process. The company pulled its products from hundreds of department stores. It also said it would limit discounts on Coach handbags and other goods.

Coach acquired Stuart Weitzman in 2015 and Kate Spade earlier this year.