Coach has reached an agreement to buy handbag maker Kate Spade for $2.4 billion amid industry-wide struggles to get customers to pay full price for luxury items, Bloomberg reports. The companies have reportedly been in talks about the acquisition for months.
The retail industry "isn't as robust as we thought it would be at the beginning," Bloomberg Intelligence analyst Chen Grazutis noted following the sale. "It doesn't bode well for other brands' valuation."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
AI chatbots are leading some to psychosisThe explainer The technology may be fueling delusions
-
'Self-segregation by political affiliation is spreading'Instant Opinion Opinion, comment and editorials of the day
-
7 places across the country to experience the best of summer drinkingThe Week Recommends Stops include a Basque-inspired spot and a bar where the menu overhauls twice a year
-
Economists fear US inflation data less reliablespeed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutinySpeed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress codespeed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirementspeed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff displaySpeed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loomSpeed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panelsSpeed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of businessSpeed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
