Coach has signed the agreement to acquire Kate Spade. The total transaction value is of 2.4 billion of dollars. Victor Luis, CEO of Coach, says “through this acquisition we will create the first New York based house of modern luxury lifestyle brands”. Furthermore, the US leather giant would be interested in Jimmy Choo, a brand that was sold a few days ago from the Luxembourg-based Jab Holdings owned German family Reimann. The valuation would be around 1.2 billion euros. Lending for the purchase would also be the bottom of Qatar Mayhoola, owner of Valentino and Balmain. Coach would seem to be benefiting from Joshua Schulman’s lead as CEO, who from 2007 to 2012 held the same position at Jimmy Choo. Some analysts said the brand, valued at US dollars 11 billion on the New York Stock Exchange, would have the potential and liquidity to conclude an agreeable deal. Jimmy Choo, however, does not seem having a good time. In the third quarter, sales fell 3.7% to $ 995.2 million ($ 912.6 million), down from analysts expecting a $ 1.033 billion lower drop. However, the US top range of handbags and accessories has increased profits: net profit grew to 122.2 from $ 112.5 million. The subsidiary Stuart Weitzman, one of the latest promotional campaigns, however, made a small step forward by closing the quarter at $ 80 million (€ 73.3 million) against the previous 79 million (72.4 million). The company did not disclose its forecasts for 2017, confirming a slight growth. About Stuart Weitzman, Coach CEO Victor Luis said to WWD that in 2018 the brand could extend its activities to leather goods and accessories.
Coach buys Kate Spade and looks at Jimmy Choo. Meanwhile, its turnover fell 3.7%. Stuart Weitzman, on the other hand, grows
