Us Light Luxury Brand Kate Spade Shares Continue To Rise Will Be Acquired?

The known message is that

The price of the paction is around $27 per share, that is to say, it will be a paction of more than 3 billion dollars, and the old rivals Michael Kors and Coach are still on the bidding list.

For months, about the United States

The rumors of Kate Spade (NYSE: KATE) are continuing.

Recently, quoted sources from a number of investment media in the United States, it is estimated that the price of the paction will be about $27 per share, which means that the valuation of the company is more than $3 billion.

According to WWD, the current second round of bidding still includes the two luxury brands of Michael Kors (NYSE: KORS) and Coach (NYSE: COH). The tender was held on Monday, but before the final result, everything was full of uncertainty.

Michael Kors CEO John D.Idol earlier made it clear that the introduction of new brands to acquisitions or mergers is still a catalyst for long-term stable growth of group sales.

For Kate Spade, being acquired by Coach will be beneficial to its global distribution and the growth of men's clothing business.

Oliver Chen, an investment management company Cowen & Co. analyst, pointed out earlier that although Coach and Michael Kors are the two most potential acquirers, it does not exclude the participation of financial institutions and luxury goods groups such as LVMH (LVMH.PA), open cloud (KER) and calendar (CFR).

The possibility of bidding, he stressed that Kate Spade's takeover paction has a 80% chance of taking place in the first half year.

With the increasing cold weather in the US Department store industry, some people in the industry pointed out that the competition of light luxury brands that always relied on department stores would be variable.

Kate Spade group has been trying to increase consumer demand for handbags and small leather goods.

At the beginning of last year, the company shut down the sub line Kate Spade Saturday and menswear brand Jack Spade, hoping to focus on the development of the core brand Kate Spade New York.

The group said earlier that it would continue to adjust its strategy to expand the Chinese market.

Up to now, Kate Spade group has 175 Direct stores in North America, including 108 stores and 67 outlets, and 93 overseas stores, including 25 stores, 14 branches and 54 franchise stores.

In addition, there are 92 cooperative shops and 42 joint venture shops in Greater China.

Kate Spade group's net profit for the year 2016 was recorded at US $153 million 600 thousand, with an income of US $1 billion 380 million.

Ike Boruchow, an analyst at Wells Fargo, said

Once a favorite of Wall Street, Kate Spade management failed to release the brand value in the past few years, so that they missed their best selling period.

It is noteworthy that William Susman, founder of Threadstone Partners, said she was not sure whether Coach or Michael Kors would make acquisitions. He thought that although the discussion continued, he still thought it would not be a deal, and neither of the two would bet on the acquisition of Kate Spade.

"Why do people spend $3 billion on Kate Spade instead of buying $300 million for younger consumers of Rebecca Minkoff?"

Up to now, the speakers in three aspects of Kate Spade, Coach and Michael Kors refuse to respond to this.

yesterday

Shares rose 1.5%, Coach shares rose 2.4%, and Michael Kors shares rose 0.6%.

The price of Kate Spade has continued to rise since its acquisition, and its stock price has risen 63% in the past 3 months, and its market value is now 3 billion dollars.

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