Coach has decided to purchase the brand known as Kate Spade. The price tag for Kate Spade was $18.50 per share which came out to be a total of $2.4 billion.
Coach stated they can potentially generate $50 million in annual savings by combining both brands inventory management and supply chains. In recent years Coach sales have declined to some degree and this acquisition can help the brand target the millennial consumers.
“Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials,” – Coach CEO Victor Luis
Coach also plans to keep the key members of the Kate Spade staff after the transition process.