Can Coach Buy SW To Get Rid Of The Discount Market?

For SW, sales don't seem to worry much. The annual growth is 15%-20%.

In 2014, SW achieved $313 million in revenue, compared with $193 million in 2010.

Analysts at HBSC believe that the sales performance of Coach in fiscal year 2016 will rise slightly by 1%, but if the new takeover is considered

Then the growth rate at the group level can reach 10%.

Although this fashion brand is not Jimmy Choo, its cognition is also thriving.

When Jones Apparel Group bought 55% of SW in 2010 for $180 million, the brand was only talked about the use of special materials and the pursuit of details. Its customers are "mature modern women".

When talking about this year's paction, SW has become the pronoun of "few good looks and durable wear".

Its Nudist heel is a typical example. Dozens of female stars including Diane Kruger and BlakeLively wear it in red carpet.

"They told me that this is the only hate they can wear."

SW founder Stuart Weitzman (StuartWeitzman) told BoF in an interview in 2014.

Weitzman founded SW in 1986, after he worked in a shoe product company called Caressa.

Weitzman graduated from Walton business school, where he learned how to make a big thing.

In 2004, Weitzman started a frequent equity paction besides painting design drawings. This year, he sold a small share of SW to Bear Stearns Merchant Banking, and in 2008, Bear Stearns went bankrupt, renamed Ivring place capital.

"Ivring has helped us a lot. We have become a competitive global brand. We both feel that it is time to join hands with Jones."

In 2010, when Jones bought its SW stake for the first time, Weitzman said in a statement.

At that time, SW opened 20 conventional retail stores and five Oteri J in the United States.

Outside the United States, there are 7 stores, including flagship stores in Rome and Milan, and 19 authorized stores.

Jones has many brands, and Weitzman believes that the structure of multi business companies enables Jones to understand and support the essence of entrepreneurship.

In other words, it may be more spelling.

Jones is optimistic about the distinguished customers that SW is forming.

In 2012, Jones bought 45% of the remaining shares of SW and paid $250 million for it, which is 70% higher than that of two years ago.

When Sycamore Partners acquired the entire Jones group in 2014, SW already had 120 stores in the world, including an online store.

This private placement is not intended to be held for a long time. It first stripped SW from Jones and soon released the message of "SW".

At the same time, people also learned that Sycamore gave Weitzman some shares to keep him and continue to be the creative director and executive chairman of SW.

Investors believe that as long as Weitzman is in, the brand can always be in the middle of the day.

"If he doesn't follow the deal, then I'm not interested."

JasonB.Cohen, a luxury brand expert at TheOGroup, a creative company in New York, told New York Times earlier this year.

Besides creativity, people often mention

The Spanish factory.

In 1994, Weitzman bought the Spanish factory, which had been processed by Caressa and SW, and owned it.

Own factories give brands a faster fashion response and low cost.

Weitzman explained to BoF that they set prices according to cost, so "we only sell $385 for someone else who sells US $600-650".

Now, SW has 9 factories in Spain.

The fastest time, a group of five styles of goods, Thursday reservations, next Monday will be able to get goods.

All of these will remain the same as Weitzman's team in the future.

Coach's CEO Victor Luis (Victor Luis) said in a statement that Weitzman will take the existing team and Coach "seamless connection", so that Coach can also concentrate on internal reform.

Contrary to SW, the fashion trend of Coach is weakening and sales are not satisfactory. It also relies heavily on the US discount.

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Weitzman understands this, Coach will help in terms of scale, resources and global business acumen, and more importantly, this big brand will surely respect SW culture.

At 25 billion dollars.

SW's good play has just begun.

"Buyers usually do due diligence, but I will do the due diligence of buyers," he said.

Weitzman said.