The Selling Process Of Kate Spade Is Still In Its Early Stage.

Since the sale in mid last month, on Wednesday, according to the world clothing and shoe net, there are activist investors to supervise and urge them. Kate Spade Although &Co. (NYSE:KATE) is selling, the us light luxury group is also in touch with investment banks and related retailers. The selling process is still in its early stage.

There was no doubt that the above news stimulated Kate Spade&Co. (NYSE:KATE) shares to soar on Wednesday. The intraday rose 26% to 18.30 U.S. dollars, closing at 17.86 US dollars, soared 23.09%, and after that, it continued to have a 1% increase of 18.08 US dollars.

In November 14th, Caerus InvestorsLLC, a small hedge fund in New York, publicly urged Kate Spade&Co. to sell its shares up 7.82% to 17.93 dollars a day, and its market value increased to about 2 billion 310 million U.S. dollars, but then the share price continued to turn low.

So do not rule out. market Try to sell "theme" for "shipment".

Caerus InvestorsLLC, who was founded by Ward Davis and Brian Agnew as management partner, did not disclose the current share holdings. Only in the open letter to Kate Spade&Co.'s independent executive chairman Nanch Karch, she said she was "more and more disappointed" that the group's management failed to push the profit margin to the level of the industry. Caerus InvestorsLLC also pointed out that although Kate Spade&Co.'s revenue and core profit EBITDA growth rate can be flat or surpass Coach Inc. (NYSE:COH) Cox and Michael Kors Holding Kors, however, due to the lack of confidence of the market in its management team now, the group's share price has dropped by 63% since its record high in August 11, 2014, and its share value has lost 3 billion US dollars. Therefore, it is considered that selling will be the best way to increase shareholder value, and the group will also be a suitable acquisition target for lifestyle accessories company. Coach Inc. Cox and Michael Kors Holding Ltd. and other larger competitors or acquisitions.

According to the world clothing and shoe net, Caerus InvestorsLLC held a KateSpade&Co.0.03% stake in September 30, 2015; and Jana Partners LLC of Barry Rosenstein, a radical investor, also disclosed the holding of KateSpade&Co.0.85% shares, which means that KateSpade&Co. is likely to be attacked repeatedly.

Previously, Victor Luis, chief executive officer of Coach Inc., revealed that the group continued to purchase after buying the high-end shoe brand Weitzman Stuart, so the US blogger broke the news that CoachInc. CoachInc. plans to buy the British luxury group Burberry Group PLC PLC (BRBY.L) bobley, causing a series of turbulence in share prices.

Wells Fargo&Co. (NYSE:WFC) Wells Fargo Bank analyst Ike Boruchow pointed out that at present, Coach Inc. Cox, Michael Kors Holding Ltd., and the multi brand groups such as the Kors (Group), Wei Fu (Group), Wei & amp; Hui (and), etc., are all showing that they are looking for takeover targets, and the timing of the choice is very conjectures.

Ike Boruchow also believes that Kate Spade&Co. can continue to grow and erode market share in the same store sales of other brands when it regress, and earnings growth also outperforms peers' performance, profit margins are also rising, and the wholesale channel has considerable expansion opportunities. The group has great investment value, especially at present, EV is only 6.7 times the expected EBITDA in fiscal year 2018.

For pressure on Caerus Investors LLC, the KateSpade&Co. spokesperson thanked the shareholders for feedback by mail, and the group will continue to have an open and constructive dialogue with all shareholders. Coach Inc. spokesman said he did not comment on rumors and speculation.

According to the world clothing and shoe net, Kate Spade&Co. has achieved a profit in the last three quarters, but the same store has missed the market expectations. The Group executives have warned that macroeconomic factors will continue to hinder their development. The current fourth quarter growth will slow down, and fierce price competition in the holiday season will hurt earnings.

The focus of recent investors is mainly on the gradual decline in profit margins of Kate Spade&Co.. In the three quarter, the group not only increased promotional efforts in discounted channels to clean up inventory, but also tested consumer acceptance of lower price products, which led to increased pressure on gross margins, which fell 180 basis points from 61.2% in the same period last year, and dropped from 61.2% to 59.4%. CraigA.Leavitt, the group's chief executive, expects that the price pressure of the upcoming holiday season will be at a "very high" level, and that the gross profit margin may be further reduced by more than 50 basis points.

MichaelKors stores

The sale of Kate Spade&Co. is rumoured that after mid November, the market quickly announced that its rival Michael Kors Holdings Ltd. (NYSE:KORS) will also sell, while the buyer is LVMHSE which is used every time. The latter has held Michael Kors Michael for a period of time.

However, for the sale of Michael Kors Holdings Ltd., Tang Xiaotang, founder of NoAgency, a consultancy research and investment agency in the luxury goods and clothing industry, said that this is just the same market speculation as the merger of Coach and Burberry. "Investors are eager to sell MichaelKors, use market information to evolve, try to arbitrage, or reduce investment losses."

At the beginning of November, after the two quarter results were released, Michael Kors Holdings Ltd. (NYSE:KORS) share price had a double digit slump. The market believed that the brand had been "Out of Fashion", which is a more severe "accusation" by the speculative organization over the past two years.

For sale rumors, Michael Kors Holdings Ltd. and LVMHSE declined to comment. LVMHSE has just launched a brand DKNY similar to Michael Kors, which has another brand name similar to Michael Kors, which is currently struggling.

Tang Xiaotang said that LVMHSE itself is now difficult to take into account, the acquisition of Michael Kors has fallen into recession can only be said "Arabian Nights".

More interesting reports, please pay attention to the world clothing shoes and hats net.