COACH is buying Shoemaker Stuart Weitzman
According to an article released yesterday by Sun Media, Coach inc is in the process of buying women’s luxury footwear company Stuart Weitzman Holdings LLC. The plan for Coach, is that holding Stuart Weitzman will expand Coach’s high-end offerings in order to compete with the surging popularity of Kate Spade, and Michael Kors continued growth.
This could be a good move for Coach as the brand has had major difficulty competing with other brands in the lower luxury category. In an effort to make Coach seem more upscale, and thus more desirable the company is reducing it’s promotions chain wide, and will close underperforming stores.
While we aren’t sure if this is a good move for Coach, the purchase of Stuart Weitzman for $574 Million dollars will hopefully bring coach the diversity of luxury products they are looking for.
Source: Canoe Sun Media