Paul Goncalves, CFA
Today, 9:38 AM
- Analysts are already weighing in on the impact of a merger between Coach (NYSE:COH) and Burberry (OTCPK:BURBY, OTCPK:BBRYF) -- even with the deal still only in the speculative stage.
- "A merger of Coach and Burberry would primarily be a merger of problems," notes Exane BNP Paribas analyst Luca Solca.
- "M&A history in luxury has shown that mergers don't obviously help in regaining brand traction and desirability, while cost efficiency in the face of declining brand momentum are often just a way to run in order to stand still," he adds.
- Coach is believed to be working with Evercore on the Burberry deal.
- Previously: Burberry and Coach higher amid merger speculation (Oct. 21)
- Burberry is now up only 3.2% in London.
Today, 8:24 AM| Today, 8:24 AM
Jan. 6, 2015, 7:51 AM
- Shares of Coach (NYSE:COH) move higher in early action after the company lands the Stuart Weitzman brand.
- Retail analysts see the luxury shoe concern a nice fit for Coach on the upside growth potential for the brand.
- The move by the company gives it a path to stem the declining market share to Michael Kors and Kate Spade.
- The timing of the announcement could also take some of the sting out of a Coach Q4 earnings miss.
- Previously: Coach nabs Stuart Weitzman brand
- COH +1.1% premarket.
Jan. 6, 2015, 7:09 AM
- Coach (NYSE:COH) confirms it will purchase luxury brand Stuart Weitzman in a deal valued at up to $574M.
- Stuart Weitzman took in revenue of close to $300M for the 12 months ending last September 30.
- Under the terms of the deal, Coach will pay Sycamore Partners $530M for the property and contingent payments tied to performance of up to $44M.
- The company will use cash on hand and other source of available financing to close the acquisition.
- Previously: WSJ: Coach nearing $600M purchase of Stuart Weitzman (Jan. 05 2015)
Jan. 5, 2015, 6:47 PM
- The WSJ reports Coach (NYSE:COH) is close to acquiring high-end women's shoe/handbag brand Stuart Weitzman for $600M, and that a deal could be announced as early as this week.
- P-E firm Sycamore Partners gained ownership of Stuart through the $1.2B Jones Group acquisition. Coach is coming off an FQ1 in which its North American comparable-store sales fell 24% Y/Y.
May 13, 2013, 2:50 PM
Coach (COH -0.2%) wants to accessorize by buying a new brand after the emergence of Michael Kors and other new brands in North America has made organic growth tougher. The company approached luxury retailer Tory Burch last year, but a $2B-$3B deal offer wasn't quite enticing enough to land a deal.| May 13, 2013, 2:50 PM