High End Shoe Brand Stuart Weitzman Acquisition Acquired

Coach Inc. Cox has been dismal for the past two years, especially in North America, where its same store sales have fallen for 7 consecutive quarters, while share prices have dropped sharply while losing market share.

Coach Inc. (NYSE:COH) released its three quarter earnings at the end of last month, although the adjusted US $0.36 EPS slightly exceeded the average expected $0.35 of "Flower Street" analysts, but the group's quarterly earnings of $929 million 300 thousand were lower than analysts' expected $949 million 900 thousand, especially in the main market.

23% double-digit declines continue to lose market share at high speed, disappointing investors.

Coach Inc.

Recently announced the announcement to complete the shoe Brand Company Stuart Weitzman Holdings LLC acquisition.

In January 2015, Coach Inc cooperated at $530 million in cash, and purchased the high-end women's footwear brand from the private equity fund Sycamore Partners LP, depending on the Stuart Weitzman's highest additional floating price of the next three years in the next three years.

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According to the statement, Stuart Weitzman brand co-founder Stuart Weitzman will still be responsible for the group business as the executive chairman and creative director of Stuart Weitzman Holdings LLC, while chief executive officer Wayne Kulkin also remains in charge of the business expansion.

By the end of December 31, 2014

LLC has a revenue of $313 million, which operates 45 stores in the United States and 62 in the international market.

Most analysts of the Stuart Weitzman acquisition industry are not optimistic, and the acquisition of Coach Inc. is also a failure.

Luxury industry analyst

The paction is also specially written, "since analysts are not optimistic about why Coach bought Stuart Weitzman?"

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Although yoga pants and sports shoes are often seen as a fashion trend, consumers will be more addicted to comfortable and casual clothes.

They also believe consumers will continue to choose such clothing.

According to foreign media analysis, an unknown footwear brand Skechers has become Nike's biggest threat.

Thanks to some recent successful financing, Skechers is now one of the most popular shoe companies in the United States.

According to a recent report by Morgan Stanley, it is also one of the most undervalued companies in Morgan.

In a recent report to customers, analysts wrote: "Skechers actually performed better than Street praised."

The company successfully recorded a record sales of $2 billion 400 million in 2014.

Its share price also doubled over the past year.

Morgan Stanley analysts believe that Skechers is likely to become the second largest footwear brand in the United States after Nike.

Although Skechers has been known for being good at imitation designer shoes, it has recently started developing its own design capabilities.

"Skechers has grown from a cottage brand to a brand with a unique look and style."

Morgan Stanley analyst wrote.

At the same time, Skechers is upgrading its factories and distribution centers.

And it is improving its marketing strategy.

The brand invited the singer Demi Lovato to promote its youth series.

It also started selling shoes designed specifically for golfers, while the series invited professional Matt Kuchar to endorse the brand.

In addition, Skechers has been committed to developing the youth market.

In the next five years, sportswear and footwear will develop rapidly in the industry.

According to Morgan Stanley data, the number of people taking part in running exercises increased by 9% on average every year since 2005.

At the same time, the millennial generation will pay more attention to health and exercise than their parents.

"An increase in exercise will also increase spending on sportswear and footwear consumption," the analyst wrote.

"We all see that sportswear will become a fashion trend."