Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Coach to Buy Luxury Shoemaker Stuart Weitzman

Coach Inc. said it would buy luxury footwear company Stuart Weitzman Holdings LLC from private equity firm Sycamore Partners in a deal valued at up to $574 million.
By
  • Reuters

NEW YORK, United States  Coach Inc. will buy women's luxury footwear company Stuart Weitzman Holdings LLC, as it looks to expand its high-end offerings to better compete with rivals such as Michael Kors Holdings Ltd and Kate Spade & Co .

Coach, known for its Poppy handbags, said it would buy Stuart Weitzman from private equity firm Sycamore Partners in a deal valued at up to $574 million.

Companies such as Michael Kors and Kate Spade have eaten into New York-based Coach's market share in North America with their affordable and trendier handbags and accessories.

Coach is realigning its business by cutting promotions and shuttering underperforming stores.

ADVERTISEMENT

The company said on Tuesday it would make initial cash payment of about $530 million to Sycamore Partners and pay up to $44 million on achievement of certain revenue targets over the three years after the acquisition closes.

Sycamore Partners acquired Stuart Weitzman last year as part of its $2.2 billion purchase of Jones Group Inc, the fashion company that owns retail chains Nine West and Jones New York.

Reuters reported on Monday that Coach was nearing a deal to buy Stuart Weitzman.

The Wall Street Journal first reported that the two companies were close to a deal.

Coach's shares were up 1.5 percent at $37.27 in premarket trading on Tuesday.

By Yashaswini Swamynathan. Editor: Kirti Pandey.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.
view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections