Fifth&Pacific Or Kate Spade Will Be Sold.

Recently, according to the SunTrustBanksInc. news of the US investment bank, Fifth&PacificCos.Inc. (NYSE:FNP) may sell its existing golden bull brand KateSpade. It does not exclude the possibility of the overall sale of the company. While the momentum is fierce, KateSpade, which has more than 20% sales growth in the same quarter in the 12 quarter, has also attracted retailers including many private equity funds and Coach, Inc. (NYSE:COH). Investment bank WedbushInc. is also known as Coach, Inc. (NYSE:COH), which is logically a bidder.

After stripping the struggling brand JuicyCouture and seeking to sell LuckyBrand, KateSpade will bring more market value to its parent company than it does now. At the end of last month, the Fifth&PacificCos.Inc. (NYSE:FNP) three quarter financial report showed that the loss had narrowed, while KateSpade still had 31% of the same store sales growth. In the case of global luxury goods slowdown and 5% average growth rate, KateSpade was one of the few positive brands with MichaelKors.

Before Fifth&PacificCos.Inc. (NYSE:FNP) sought to sell two brands of JuicyCouture and LuckyBrand, the industry indicated that KateSpade was fully capable and could be split in the future. In October 7th, Fifth&PacificCos.Inc. (NYSE:FNP) announced the sale of its brand JuicyCouture for $195 million and took over the brand management company AuthenticBrandsGroupLLC, which will be delivered in cash. In December 2nd, sources said private equity funds GoldenGateCapital, LionCapitalLLP, MarlinEquityPartners and AuthenticBrands brand management companies were bidding for LuckyBrand, while Fifth&PacificCos.Inc. (NYSE:FNP) CEO WilliamMcComb said at the Q3 earnings conference that "it is not yet ready to comment on the decision-making process of LuckyBrand."

PamelaQuintiliano, an analyst at New York investment bank SunTrust, told Fifth&PacificCos.Inc. Bloomberg that Fifth&PacificCos.Inc. (NYSE:FNP) divestiture LuckyBrand wanted to focus. KateSpade Brand, but LuckyBrand still has a solid growth in single digit number, and it is still realized at the same time. At the same time, it occupies a small share of the group. This makes it difficult for Fifth&PacificCos.Inc. (NYSE:FNP) to give up the brand easily. In the three quarter of fiscal year 2013, sales of KateSpade rose by 76.4% to $179 million 700 thousand, and the sale of LuckyBrand achieved 120 million US dollars, and the sales of JuicyCouture had been sold for 118 million US dollars, basically three points.

Anyway, Fifth&PacificCos.Inc. (NYSE:FNP) is undoubtedly the center of the KateSpade brand. In March, at the investment meeting specially held for KateSpade, KateSpadeLLC CEO CraigLeavitt said at the meeting that KateSpade would become a $4 billion brand, which could reach US $2 billion in the next four years, and the investment was encouraged by the success of MichaelKorsHoldingsLtd. (NYSE:KORS) in the open market, hoping that KateSpade could split up the independent listing in the future.

In September, Fifth&PacificCos .Inc. (NYSE:FNP) said it would set up a Hongkong based Asia Pacific regional headquarters for KateSpade, and appoint JoeWong, Steve Wong, President of KeringSA (KER.PA)'s former Greater China, as senior vice president, steering the Asia Pacific business. JoeWong Steve Wong has more than 30 years of experience in the fashion retailing industry. Besides serving Gucci, he has served LaneCrawford Lian card, EspritAsia EspritAsia Asia and Hongkong branch of HarveyNichols department. He will lead the development of KateSpade, including China, Korea, Philippines, Singapore, Australia, Malaysia, Thailand and Indonesia. However, another important market in the Asia Pacific region, Japan's KateSpade business will remain independent, not belonging to the Asia Pacific region. The Japanese market has no doubt about the status of all fashion brands. KateSpade, another derivative brand KateSpadeSaturday, started from the Japanese market and then preheated the new store in the United States through the form of guerrilla stores.

In view of LuckyBrand The uncertainty of brand sale, stripping KateSpade, introducing new investors, setting up new companies, and vigorously expanding the stock market are ideal and fastest growing ways to meet the capital market. However, SunTrust New York analyst PamelaQuintiliano and Wedbush analyst CorinnaFreedma all said that the competition brand Coach, Inc. (NYSE:COH), the acquisition of the possibility of large, Coach, Inc. (NYSE:COH) Cox Chi has sold the ReedKrakoff brand, and the company is currently in the low valley, urgently need a brand with long-term growth potential to make up for the decline, and once the sale of the price of the price of the price may rise, and the acquisition of the company may require the acquisition of the entire company. At present, the company under Fifth&PacificCos.Inc. (NYSE:FNP) includes KateSpadeLLC, LuckyBrand and a jewelry company AdelingtonDesignGroup. According to Fifth&PacificCos.Inc. (NYSE:FNP)'s fiscal year 2012 earnings report, AdelingtonDesignGroup in the 2012 fiscal year revenue is about 83 million dollars, KateSpadeLLC income is 462 million dollars, after selling LuckyBrand, KateSpadeLLC will be Fifth&PacificCos.Inc. (NYSE:FNP) main income source, accounting for about 85%, and this share share with the development of KateSpade is likely to further grow.

Fifth&PacificCos.Inc. (NYSE:FNP) had expected EBITDA to be between $120 million and $150 million in 2013. According to the three quarter earnings report, the adjusted EBITDA after LuckyBrand was $5 million, JuicyCouture EBITDA was $7 million, AdelingtonDesignGroup EBITDA was 4 million US dollars, totaling 16 million US dollars, 2/3 for the KateSpade adjusted US $2/3. After the JuicyCouture adjustment in the two quarter, EBITDA was a loss of $4 million, and KateSpade in the 2013 fiscal year should be about 100 million dollars. Fifth&PacificCos.Inc. (NYSE:FNP) had also predicted that EBITDA would be between $100 million and $105 million a year, of which KateSpade would contribute $94 million to $9500. So SterneAgee analyst IkeBoruchow's total acquisition of KateSpade will amount to $4 billion 400 million, exceeding Fifth&PacificCos.Inc. (NYSE:FNP) and its current market value of $4 billion 50 million.