Kate Spade Is Looking For Buyers Under Shareholder Pressure.

Coming across the new year with doubts, under the pressure of shareholders, the house is famous for its bright colors and smart modern style.

Brands are looking for buyers.

According to the world clothing shoes and hat network understanding, Kate Spade 28 day afternoon stock price rises 23.1%.

A spokesman for the company said: "for policy reasons, we do not explain the industry's hearsay or speculation."

But the industry was not surprised by the news of the sale. As early as November 14th, one of the Kate Spade shareholders, the New York hedge fund Caerus Investors, had sent an open letter to the company for sale.

Caerus Investors's first investment in Kate Spade originated in 2009, when the latter was still under the banner of Liz Claiborne, an American clothing company.

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In the letter, Caerus Investors expressed concern about the poor performance of Kate Spade recently.

The letter said: "we believe that Kate Spade should look for buyers with strategic consciousness in the field of lifestyle, especially in the field of accessories."

It is interesting that Coach, a powerful potential buyer, rose 2.7% after the public letter was released.

Its chief executive, Victor Luis, has no doubt in Wall Street that he is actively looking for acquisitions targets.

Analysts at Mizuho Securities, an American securities firm, believe that Kate Spade's appeal to the millennial generation and its successful distribution in handbags, fashion and jewellery is enough to attract a large number of buyers.

"Including Coach, it is rumoured that the latter will be assessed in the next few weeks."

Analyst Betty Chen also noted that the discount for Kate Spade in the holiday season this year was higher than last year's 5%-10%: Ott Lars's discount is between 60%-70% and retail store discount is around 30%.

According to the world clothing and shoe net, Kate Spade is now working with an investment bank and has discussed with a number of potential buyers.

"Kate Spade is actually a relatively healthy company, and it has the opportunity to develop wholesale channels."

Ike Boruchow, an analyst at Wells Fargo, said.

In 1993, designer Kate Spade and her husband Andy Spade jointly founded a naming accessories company with two partners.

When she was an editor in fashion magazines, she often used hopping colors when she was designing accessories.

Many consumers are attracted by the simplicity of bags.

6 years later, Niemann, a luxury boutique in the United States, invested $33 million 600 thousand (about 208 million yuan) to subscribe for 56% of the brand.

Two couples announced their departure after the Liz Claiborne acquisition in 2006.

Today's Kate Spade is fully responsible for Deborah Lloyd, who is also chief executive officer and creative director.

The partnership between Deborah Lloyd and CEO Craig Leavitt increased Kate Spade revenue by at least 7 times between 2008 and 2014.

Social media plays a role in it. Bright and lovely brand images are sent to young people who are separated from each other through Instagram, Twitter and so on.

Kate Spade, who wants to grasp the Z generation, also plans to launch smart watches in November this year, attracting technology enthusiasts through smart wear.

Up to now, Kate Spade has 175 direct outlets in North America, including 67 outlets.

In addition, it has 93 overseas stores, and Oteri J and franchise stores have 14 and 54 respectively.

Excessive reliance on discount commodities has been the main reason for Kate Spade's criticism of investment banks.

However, in recent years, the retail price is not enough, making the luxury brands including Kate Spade and Michael Kors suffer.

According to the world clothing and shoe net, Kate Spade now has a market value of about $23 billion.

Craig Leavitt once said that the company's target was $4 billion.

From the third quarter earnings report recently released by Kate Spade, the company's revenue exceeded analysts' expectations, with a net profit of $29 million 600 thousand and a year-on-year increase of 14.1% in revenue to 316 million dollars.

Michael Kors, G-III and even VF group have become the hot targets in the industry.

Kay Koplovitz, partner of Springboard Growth Capital, does not think VF will be an ideal buyer. After all, its VF with Timberland and North Face is too outdoors. It is far from the current clientele portrait of Kate Kate.

"If Kate Spade wants to be placed under the umbrella of a luxury group, it has to be careful to maintain brand characteristics so as not to be assimilated by the parent company."

Kay Koplovitz believes that from a private perspective, buyers have the best fashion brand and are full of fashion sensitivity and professionalism.

More interesting reports, please pay attention to the world clothing shoes and hats net.