Is that michael kors cheap handbags a smart move michael kors sale uk for the troubled brand Help and contact usterms of servicerss ad choicesthe upscale purse and accessories retailersaid tuesday that it has luxury footwear brand stuart weitzman from private equity firm sycamore partners in a deal valued at up to $574 million.The deal comes as coach moves to bounce back froma rough2014.While rivals such as michael kors and kate spadesaw explosive growth, coach’s salesfaltered asits veneer of exclusivity eroded:A frenzy of deep discounts on full price items made the bags less of a status symbol, and shoppers tired of the logo emblazoned styles that the brand had become known for over more than a decade.The acquisition of stuart weitzman brings into coach’s stable a brand that pulled down $300 million in sales in 2014 and that has seen steady growth for the last five years.But analysts are questioning whether the deal might be more of a distraction for coachthan a solution. “Under normal circumstances, a leading american handbag brand acquiring a leading american footwear brand would be a reasonable strategy, but [coach]may have too many balls in the air right now,”Said ike boruchow, specialty retail analyst at sterne agee, in a research note.Indeed, coach has a multi pronged”Transformation strategy”In placeto try to reinvigorate itsstoried brand, which last quarter saw a 24 percent drop in sales at north american stores open more than a year.Coachhas broughtin a new creative director, stuart vevers, whose first collection for the brandhit stores this fall.In june, the company announced it would beredesigning its stores, cutting back on promotionalpricing and adding more expensive itemsto its product assortment.Coach also has said itsees significant growth opportunity outside of its core handbag business into other categories, including footwear.This is one reasonthe acquisitioncould prove fruitful, analysts said:Stuart weitzman is known for its technical prowess in shoe making, andcoach could put that know how to use as it expands its own footwear offerings.Stuart weitzman had something of a stodgy reputation in the not so distant past, but the brand has gotten fresh buzz lately as its over the knee boots in particular, the flat and functional 5050 boot and the have becomefavorites ofcelebrities and fashion bloggers. “They got back to what they were really good at, which is offering fashion coupled with comfort, and they put a sexier spin on it,”Said jennifer black, president of retail research firm jennifer black associates.Coach isto pay sycamore partners $570 million in cash for the shoe brand, and could pay them an additional $44 million if certain revenue targets are achieved within three years of the completion of the deal.Coach’s stock fellmore than 1 percent after the deal was announced, closing at $36.30 a share.Coach was apioneer of the category michael kors sale outlet that’s come to be known as”Affordable luxury,”In which a handbag typically costs $200 to $400, a price point that makesthe products feel indulgent but not completely out of reach for a middle class shopper, unlikethe four figure price tagstypically seen on handbagsfrom high fashion houses such as chanel or dior.Recently, newcomershave come on strong in this price category, including kate spade and tory burch, which each blendultra feminine and preppy looks, as well as michael kors, which likes to say it provides shoppers with a”Jet set experience. “”You had all those factors kind of chipping away at coach, which was doing the exact same thing they’d done for many years,”Said robert burke, principal of retail consultancy robert burke associates.Coach has recently had some success selling bags that are a notch more expensive than the ones on which it made its name, more in the $400 $600 range. “There have been certainly some signs of slowdowns at the true luxury level,”Said dorothy lackner, managing directorat topeka capital markets. “That would seem to create white space where these more affordableluxury brands can take share. “
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