Coach, Inc. (NYSE:COH) (SEHK:6388), a leading New York design
house of modern luxury accessories and lifestyle collections, today
announced that it has completed the acquisition of Stuart Weitzman
Holdings LLC, a leading designer and manufacturer of women's luxury
footwear from private equity firm Sycamore Partners. This
transaction complements Coach’s current global leadership position
in premium handbags and accessories, while immediately contributing
to the company’s earnings as Coach continues to make meaningful
progress against its brand transformation announced earlier this
year.
Stuart Weitzman markets its products in fine specialty and
department stores worldwide and in its own retail stores in the
U.S. and Europe. Stuart Weitzman realized net revenues of $313
million for the twelve months ended December 31, 2014.
Stuart Weitzman is continuing as Creative Director and Executive
Chairman of Stuart Weitzman Holdings LLC, and together with Wayne
Kulkin, Chief Executive Officer of Stuart Weitzman, and their
management team, remains fully committed to the growth of the
business.
At the deal closing, Coach made initial cash payments of
approximately $530 million to Sycamore Partners. In addition, Coach
will make up to $44 million in contingent payments to Sycamore
Partners upon the successful achievement of selected revenue
targets over the three years following the closing of the
acquisition.
Coach financed the transaction with cash on hand. The
acquisition is expected to be accretive to earnings per share,
exclusive of transaction-related charges including anticipated
purchase accounting adjustments and contingent payments related to
the transaction.
About Coach, Inc.
Coach, established in New York City in 1941, is a leading design
house of modern luxury accessories and lifestyle collections with a
rich heritage of pairing exceptional leathers and materials with
innovative design. Coach is sold worldwide through Coach stores,
select department stores and specialty stores, and through Coach’s
website at www.coach.com. Coach’s common stock is traded on the New
York Stock Exchange under the symbol COH and Coach’s Hong Kong
Depositary Receipts are traded on The Stock Exchange of Hong Kong
Limited under the symbol 6388.
About Stuart Weitzman Holdings LLC
Stuart Weitzman, a legendary designer and manufacturer of
women’s luxury footwear, operates 46 retail stores across the
United States, including New York, Beverly Hills, Chicago, Boston
and Las Vegas. The company also has 67 international stores
including eight directly operated locations, 19 global
shop-in-shops, and e-commerce sites in the United States, Canada,
Europe and Hong Kong. Stuart Weitzman footwear and accessories are
sold in more than 70 countries.
A luxury brand built upon the idea of creating a
beautifully-constructed shoe, Stuart Weitzman’s main objective has
always been to merge fashion and function. The award-winning styles
created by founder and designer Stuart Weitzman are engineered to
feel as good as they look, and to look as good as they feel.
Neither the Hong Kong Depositary Receipts nor the Hong Kong
Depositary Shares evidenced thereby have been or will be registered
under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered or sold in the United States or to,
or for the account of, a U.S. Person (within the meaning of
Regulation S under the Securities Act), absent registration or an
applicable exemption from the registration requirements. Hedging
transactions involving these securities may not be conducted unless
in compliance with the Securities Act.
This press release contains forward-looking statements based on
management’s current expectations. These statements can be
identified by the use of forward-looking terminology such as “may,”
“will,” “should,” “expect,” “intend,” “ahead,” “estimate,” “on
track,” “to be,” “on course,” “forward to,” “future,” “to lead,”
“provide,” “to help,” “to delivering,” “to benefiting,” “to
advancing,” “believe,” “remains,” “to reinvigorate,” “to achieve,”
“to make,” “to enable,” “to realize,” “return to,” “to acquire,”
“to execute,” “are positioned to,” “continuing to,” “trajectory,”
“potential,” “project,” “guidance,” “target,” “forecast,”
“anticipated,” or comparable terms. Future results may differ
materially from management’s current expectations, based upon risks
and uncertainties such as expected economic trends, the ability to
anticipate consumer preferences, the ability to control costs,
etc.
Additional risks and uncertainties related to the transaction
include the following (i) the risk that the transaction disrupts
current operations, (ii) the risk that anticipated synergies and
opportunities as a result of the transaction will not be realized,
(iii) difficulties or unanticipated expenses in integrating Stuart
Weitzman into Coach; (iv) the risk that Stuart Weitzman does not
performed as planned following the acquisition including that
Stuart Weitzman will not achieve anticipated revenue targets; and
(v) potential difficulties in employee retention following the
consummation of the transaction. Please refer to Coach’s latest
Annual Report on Form 10-K, our Quarterly Report on Form 10-Q for
the quarterly period ended December 27, 2014 and its other filings
with the Securities and Exchange Commission for a list of
additional risks and important factors.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20150504006333/en/
Coach:Analysts & Media:Andrea Shaw Resnick, Global Head
Investor Relations & Corporate
Communications212/629-2618orChristina Colone, Director, Investor
Relations212/946-7252orStuart Weitzman:Karen Ferko, Executive Vice
President of Global Communications212/287-0671
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