Coach Is Buying Kate Spade; Expect An Announcement Shortly

Kate Spade New York Pre Fall 2017.

In January 2o17, DM Fashion Book reported that Kate Spade New York is ups for grabs. We also mentioned that New York – based multinational luxury fashion company Coach and American fashion brand and designer Michael Kors are interested in purchasing the American fashion design house, which was founded by Kate Spade and Andy Spade in 1993, according to reports (see our original story here). Back then, the two companies’ broads were conversing the feasibility of going ahead with a bid.

According to sources inside both companies, Coach’s acquisition of Kate Spade may be announced in a matter of weeks, if not days. “Coach has a long-standing policy of not commenting on rumors and speculation,” a Coach representative told BoF. Kate Spade also declined to comment.

Coach brought luxury goods company shoemaker Stuart Weitzman in January 2015 for more than $500 million in cash. Coach was said to also have explored purchasing New York-based brands Diane von Furstenberg and Rebecca Minkoff, the latter of which sold a minority stake to private equity firm TSG Consumer Partners in 2012. (Coach declined to comment.)

DM Fashion Book could officially report that there were talks of luxury conglomerate Kering interested in buying Coach.

As with Coach, handbags account for the majority of sales at Kate Spade, but other products — including apparel and perhaps more importantly, housewares including dinnerware and stationery — make up a larger portion of the business

Kate Spade is also growing globally, with international net sales of $202 million in 2016, up 7 percent year over year.

Stay tuned to DM Fashion Book as this story develops!

Kate Spade New York Pre Fall 2017.

Photos Credit: Courtesy of Kate Spade New York

Source: BoF