Coach trims its digital leadership
April 26, 2016 02:19 PM
With Coach Inc. de-emphasizing online sales, the luxury handbag maker’s head of digital is leaving as part of an executive reorganization.
Company veteran David Duplantis, who was president of global, digital and consumer experience, is out, along with president and chief operating officer Gebhard Rainer, Coach, No. 163 in the Internet Retailer 2016 Top 500 Guide, said in its Q3 2016 earnings release.
Coach posted the steepest decline in online sales of all retailers in the 2016 Internet Retailer Top 500 Guide. According to Top500Guide.com, Coach’s online sales dropped 60% in 2015 to $200 million, from $500 million in 2014. CEO Victor Luis told analysts on Coach’s Q2 2016 earnings call in January Coach is pulling back on selling discounted merchandise online and is focusing Coach.com on being more of a full-price retailer.
Taking over Duplantis’s responsibilities will be Andre Cohen, whose role will expand. Cohen was promoted to president of North America in January 2015 at the same time Duplantis added global marketing and consumer intelligence to his responsibilities. Cohen’s title will be president of North America and global marketing.
Replacing Rainer will be chief administrative officer Todd Kahn, who becomes president and chief administrative officer. Kahn will head up supply chain, information technology and procurement.
“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,” CEO Victor Luis said.
According to his LinkedIn profile, Duplantis was with Coach for more than 17 years, starting as vice president of North America retail merchandising, planning and allocation. He rose through the ranks, becoming president of global marketing, digital and customer experience in January 2015. He also previously held management positions with J. Crew Group Inc. (No. 49 in the Top 500) and Gap Inc. (No. 20).
For the third quarter ended March 26, Coach, which does not break out online sales in its earnings reports, reported:
- Net revenue of $1.033 billion, up 11.2% from $929.3 million last year.
- Net income of $112.5 million, up 27.7% from $88.1 million.
For the first nine months of fiscal 2016, Coach reported:
- Net revenue of $3.337 billion, up 4.7% from $3.188 billion last year.
- Net income of $379.0, down 3.0% from $390.7 million.