Coach to buy Luxury Footwear Brand Stuart Weitzman

On Monday, the rumor bill was buzzing that Coach, Inc. was going to acquire luxury footwear brand Stuart Weitzman. Coach formally announced the acquisition of Stuart Weitzman from Sycamore Partners in a deal valued up to $574 million yesterday.

shoe-miracle-stuart-weitzman-coach-acquisition

Source: Stuart Weitzman

The views from industry experts seem to be mixed as to whether this is actually a good deal or not but I think most are focusing on the deal from Coach’s perspective and the potential benefits to Coach.  And rightfully so, since the handbag maker has been struggling over the last few years to find its footing given increased competition from the likes of Michael Kors and Tory Burch.  Stuart Weitzman, most noted for its Nudist sandal that was a fixture on the red carpet in 2014, is a strong brand that has great potential to expand and improve its product line.  Stuart Weitzman may not be a savior for Coach but Coach’s footwear business will likely benefit from the knowledge it gains about Stuart Weitzman’s successful wholesale business.

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