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Tuesday, January 6, 2015

Coach to purchase shoemaker Stuart Weitzman to expand luxury offerings, (NYSE: COH)

Coach Inc will purchase women's luxury footwear company Stuart Weitzman Holdings LLC, as it looks to expand its high-end offerings to better compete with rivals such as Michael Kors Holdings Ltd and Kate Spade & Co .Coach, known for its Poppy handbags, said it would buy Stuart Weitzman from private equity firm Sycamore Partners in a deal valued at up to $574 million.Companies such as Michael Kors and Kate Spade have eaten into New York-based Coach's market share in North America with their affordable and trendier handbags and accessories.Coach is realigning its business by cutting promotions and shuttering underperforming stores.

Coach, Inc. (Coach) is a marketer of accessories and gifts for women and men. Shares of COH fell by 1.55% or $-0.58/share to $36.73. In the past year, the shares have traded as low as $32.72 and as high as $56.59. On average, 4551650 shares of COH exchange hands on a given day and today's volume is recorded at 4525080.