As the label Kate Spade pursues one of its most lucrative endeavors yet, designer Kate Spade will receive nothing from the brand’s $2.4 billion dollar sale to Coach. Kate and her husband opted out of the brand years ago. Lesson here: There is such a thing as cashing your chips too early.
New York-based Coach will be acquiring Kate Spade before 2017 ends, knocking out the brand as a competition. Another lesson here: If you can’t beat them, buy them.
Kate Spade, a favorite in the entry-level designer category, is known for fun, millennial designs which have expanded into bedroom necessities and even kitchen essentials. Coach CEO Victor Luis hopes to “unlock Kate Spade’s largely untapped global growth potential.”
The move is also part of Coach’s scheme to raise its sales and the brand’s exclusivity. The label has been suffering from online flash sales and wholesale identity. Coach has maintained that Kate Spade will still receive autonomy in branding and will keep the important talent behind the brand.
Coach’s acquisition of Kate Spade follows their successful purchase of Stuart Weitzman for $547 million.