February 14, 2013
On Thursday, handbag and accessories maker Coach (NYSE: COH ) announced a series of moves aimed at making steady progress toward a change of leadership over the next two years.
The company has promoted International Group President Victor Luis to the position of company President and Chief Commercial Officer, and appointed him also to a seat on the Board of Directors. Ultimately, Luis is expected to become Chief Executive Officer of the company in January 2014. In the meantime, Chairman and CEO Lew Frankfort will remain in his posts, becoming Executive Chairman only when Luis takes over as CEO in two years.
Luis is a seven-year veteran of the firm, having joined Coach as its President and CEO of Coach Japan in 2006. In a statement, Frankfort pointed out that Luis has since "spearheaded our meteoric growth in Asia."
Since Luis's arrival, Coach sales in Japan have roughly doubled, alongside a more than doubling of company-wide sales. The firm's international division has increased its sales nearly six-fold, from $117 million in 2006, to $675 million last year.
Coach shares are nonetheless shedding value on the news, declining 0.8%, to $48.39, in early trading.