The label has been suffering from online flash sales and wholesale identity.
Download the Nigeria Today app from Play store. "Kate Spade should benefit from the acquisition through access to broader, global distribution and perhaps management support with growing its men's business".
USA retail sales have declined in February and March, after posting anemic growth for the bulk of 2016. "Consumers continue to shift dollars away from apparel to handbags, accessories and footwear", he said.
"While M&A is not often seen positively by equity markets in luxury, we believe that for Coach it is different, essentially because acquisitions would dilute the mono-brand risk (an issue for any "soft luxury" company) and would lower the dependency on Coach brand outlets (the main bear argument on the name, still)". The company confirmed it was reviewing such options in February.
He said only 35% of Kate Spade stores overlap with Coach locations.
Two of the country's best-known luxury accessories brand plan to merge. Coach shares rose almost 5 per cent to $44.71.
Luxury brand Coach has announced it will buy Kate Spade, the American handbag firm, in a $2.4bn (£1.85bn) tie-up. Meanwhile, its net income jumped to $85.55 million, or 66 cents per share, during the quarter, from $61.46 million or 48 cents per share, a year earlier.
Luis has promised that under Coach, Spade would pull back from discounting and sell fewer bags at department stores.
Coach has been on the hunt for acquisitions as Mr. Luis seeks to build a collection of brands and respond to the rapid rise of Michael Kors Holdings Ltd. Coach approached Burberry Group PLC about a takeover a year ago but was rebuffed. Coach has also integrated the Stuart Weitzman business by both extracting operating efficiencies and creating new sales opportunities. If the brands are woven together too tightly, there's a risk that longtime customers will be turned off by customer-service changes, shifts in access, or other post-acquisition modifications.
Coach chief financial officer Kevin Wills said the complementary nature of the businesses should bring US$50 million in cost savings in three years after the deal closed.
The transaction is not subject to financing conditions and Coach has secured committed financing for the deal from BofA/Merrill Lynch.
Coach also recently inked a deal with celebrity fashion icon Selena Gomez, who will appear in the brand's ad campaigns beginning in the fall of 2017 and across all of Coach's social media channels.
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