While both companies are considered premium handbag and accessories brands, Coach estimates there is only a 10 percent shopper overlap between the two brands, and 60 percent of Kate Spade shoppers are highly-coveted millennials.
But don't expect to find Kate Spade wallets in Coach stores. In fact, Coach intends for its brands to remain so independent, it doesn't want its shoppers to know Kate Spade and Stuart Weitzman are under its umbrella too.
"We don't want consumers to any have idea that there is a link. We don't think it's relevant," explained Coach CEO Victor Luis in an interview with CNBC. "It's the current scenario with Stuart Weitzman [and Coach]. To that end, there won't be links between the brands online. All the connection will be on the back end of the business" like logistics and some supply chain costs.
This is a reflection of how Coach classifies itself now, as "a leading New York design house of modern luxury accessories and lifestyle brands."
The brands will remain very separate because they are complementary in Luis' mind as he describes each.
Kate Spade has "a unique brand attitude that's youthful, with a much higher penetration of millennials, fashionable, fun, feminine with a bit of whimsy," Luis said.