Coach Is A Buyer Of High-End Women'S Shoes?

Coach Inc. (NYSE:COH)

Group 6 announced in January to buy high-end women's clothing at a maximum of $574 million to private Holdings Company Sycamore Partners LP.

Brand Stuart Weitzman Holdings LLC.

For Coach Inc., which is trying to resume its business, the deal has not been well received by the industry. On the contrary, many brokerages are worried about the reports of investors. They believe that shoe business may distract Coach Inc., whose core is handbag business.

The US dollar is not a huge purchase for Coach Inc. Cox, which has 900 million dollars in cash and equivalents and generated nearly 750 million cash flow in the past year, but it is also not the number of expenditures that can be impulsive. The industry is not optimistic about the current dilemma of Coach Inc., but the retail environment, consumer confidence and brand itself are all dynamic development. So the success of the paction will still have to wait 3-4 years later. Coach Inc.'s overall performance, product organization, and even new paction or split can be concluded. It is certain that Coach Inc. has its own trading reasons. These reasons are, of course, not the official wording of the paction statement, but the next Xiaobian analysis for investors. Although 574 million

Although the total revenue and occupancy rate is still the number one brand in North America in the past fiscal year, in fact, in the past quarter, Coach Inc. has been surpassed by Michael Kors Hodlings Ltd. (NYSE:KORS), Coach Inc..

In the first quarter of September 27, 2014, the total revenue of Coach Inc. was $1 billion 38 million 800 thousand, while the Michael Kors group's revenue in the second quarter of the first time exceeded Coach Inc. for 1 billion 56 million 600 thousand US dollars, according to the no fashion Chinese Web data.

In the North American market in the quarter, Coach Inc. earned $634 million, far below the Michael Kors group's $802 million 200 thousand in the same period.

According to the data of this quarter, the first brand in North America has been returned to Michael Kors.

In addition, both the overall revenue and the North American market Coach Inc. are still in a downward trend, while Michael Kors still maintains a relatively high growth rate, so the gap between the two brands will be bigger and bigger.

According to the announcement of Coach Inc., the annual sales of Stuart Weitzman amounted to 300 million US dollars. After the acquisition, with the help of Coach Inc., enterprises such as Stuart Weitzman can generally reach the upper limit of the growth scale of 10%-30%, and the 300 million scale can also allow the sale of Coach Inc. group for the first year to achieve a balanced growth rate without considering the merger and acquisition.

This is a good thing for investors and group size, and it can continue to maintain pressure on Michael Kors.