Coach, a luxury handbag maker, has bought Kate Spade for $2.4 billion. This was formally announced on May 8th. Victor Luis, the CEO of Coach, has expressed excitement over the partnership.
Analysts say this acquisition is good for Coach, but some customers disagree and fear that Kate Spade will lose their signature look. About 60% of Kate Spade’s customer base is young, making the brand quite appealing.
Coach wants to focus on the “accessible luxury market”, meaning their products are cheaper but still have a luxurious look.