Cox'S Acquisition Of Luxury Women'S Shoes Brand Wants To Expand High-End Product Line

Coach $574 million acquisition of women's shoes Stuart Weitzman

Coach will buy luxury.

Brand Stuart Weitzman, in order to cope with the rapid growth of competitors.

But market analysts are not optimistic about the merger, saying that this will distract the focus of the business. Yu Zheng's company in pition is useless.

Coach5.74 billion acquisition of women's shoes brand Stuart Weitzman

Nutmeg announced on January 6th local time that it would buy luxury women's shoes from private Holdings Company Sycamore Partners for $574 million.

With manufacturer Stuart Weitzman Holdings.

However, analysts are not optimistic about the first acquisition since the creation of the company. They think it is unnecessary and will distract the focus of the business.

Analysts pointed out that this paction will enable the company to focus on its core bag business.

Analysts at Stifel Nicolaus, a brokerage firm in Wall Street, say that when the company is in a critical pition period, any distraction will make the situation complicated and cause trouble.

Analysts at Topeka Capital Markets, the US investment bank, said that the acquisition of Stuart Weitzman Holdings was about two times the total revenue in the past 12 months. The company was buying a "decentralization" business at a premium.

In the afternoon trading session on the 6 day of the New York stock exchange, the company's share price fell 1% to 36.48 dollars.

Headquartered in New York, the company is famous for its Poppy series bags, once occupying the dominant position in the light pocket market. But in recent years, the brand of Michael Kors and Kate Spade, which are very similar, have risen vigorously. With the parity of price and the design of fashionable bags and accessories, they have seized a large share of the North American market in an aggressive manner.

Due to the decline in performance, the company is currently undertaking a business restructuring, including measures to reduce the number of discount promotions, and close inefficient shops.

On the 6 th, the company announced that it would pay the initial amount of US $530 million in cash, and in the next 3 years after the completion of the acquisition, if Stuart Weitzman successfully completed its designated revenue target, it would pay US $44 million for Indus investments again.

Mr. Stuart Weitzman (Stuart Weitzman) will retain the position of chairman of Stuart Weitzman Holdings. He will pay $2 million 500 thousand to the company after completion of the paction.

The acquisition is expected to be completed in May 2015, the company said.

Wu Tung invested $2 billion 200 million last year to buy Jones group, the parent company of Stuart Weitzman Holdings. Besides Stuart Weitzman, the fashion company also has a famous retail chain.

Jiu Xi (Nine West) and women's wear brand Jones New York.

Stuart Weitzman Holdings has about 45 stores in the US market. It has 62 stores and 10 outlets in the international market, plus e-commerce and wholesale business. Its revenue in the year ended September 30, 2014 is about $300 million.

Stuart Weitzman brand shoes are famous for its luxury. It has been shining brilliance on Oscar's red carpet many times, and has also been popular in fashion magazines. It is popular among celebrities. Its knee length boots "5050" is even more popular.

Women must have hot money.

In addition, the company launched many brands of international top models such as Kate Moss (Kate Moss) and Natalie Vodianova (Natalia Vodianova). The famous photographers' iconic advertisements made their popularity in the global market continuously improve.

After Stuart Weitzman announced the sale of its brand, as early as the beginning of December 2014, there were reports that many companies were competing in the competition. Besides the company, there was also Canada's largest footwear retailer, Brown Shoe, and at least one private Holdings Company.

The acquisition of Stuart Weitzman will be a useful addition to the development of a brand that is pformed from leather goods into a lifestyle brand.

It is the category that Coach focuses on during the pformation process.