Whether it's categories or markets, Coach Inc. sees vast opportunity.Speaking Wednesday at a Robert W. Baird & Co. conference, Coach chairman and chief executive officer Victor Luis spoke about the $41 billion global handbag and accessories market, and how “there’s not a more exciting place in the fashion world than handbags and accessories.”He also discussed how Coach could play an important role in both innovation and the creation of the “emotional connection” with consumers in a purchase category that “most closely identifies with their personality.”Coach on Tuesday priced its $1 billion senior unsecured notes, consisting of $400 million at 3 percent for notes due 2022 and $600 million at 4.125 percent for notes due in 2027. The offering is expected to close on June 20, 2017. The proceeds will be used to help fund the Kate Spade acquisition.Luis said that in the short-term, the company likely would not be eyeing another large transaction, but it could in the same period look at smaller deals such as buying back a distributor in certain markets.As for future growth, Luis said: “We see an opportunity for it within the Stuart Weitzman brand [and] in the deal that we’ve just announced with Kate Spade….It’s a very emotional category, where obviously women, and increasingly men, still invest their dollars. And we see a continuance of the cyclical shift away from apparel towards accessories globally.”Luis noted the work of the past three years from elevating the core Coach brand to investing in 70 percent of its store fleet. “If some of our competitors decide they need to pull back, whether that be on distribution or whether that be on pricing, a lot of actions that we’ve already undertaken, we feel that any actions that anyone takes to drive more overall health of the category is a good thing,” the ceo said.He also spoke about growth overseas, in both developed and developing markets. One example he cited was the mainland Chinese consumer, noting that Coach has been working on developing the brand in the domestic market as the consumer has been doing more shopping close to home.“We have a market, which is one of the largest in the world in terms of new consumers coming into the middle class, [where] we’ve had tremendous success continuing to grow our distribution there as we look at Tier 3, Tier 4 cities, with more than 200 cities [having] the population of one million or more. We’re not even close to being in approximately 30 percent of those cities at the moment,” the ceo said.As for other parts of Asia, Luis noted “tremendous opportunity across Southeast Asia, and we’re focused on capturing that opportunity today through distribution partners.” He said Europe represents a $9 billion opportunity, and it is one where consumers are just “discovering the more approachable luxury brands.” Luis added: “One of our U.S. competitors has had great success there, and we’re in the very early stages of developing that opportunity for us."Luis also said Coach is on track to introduce a footwear line developed internally within a couple of months. Footwear is an opportunity for the firm because the category is a $28 billion global market, he said. And designer Stuart Vevers is developing an outerwear business for the Coach brand. Luis said the outerwear category is a $10 billion global market.Combined with the $41 billion handbag market, Luis said there is an “$80 billion global opportunity that, obviously across our three brands, we’re looking to lever against.”
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.