Coach Rises on Report Company May Consider SaleCotten Timberlake
Coach Inc., the largest U.S. luxury-handbag maker, rose after DealReporter said there is speculation the company may consider a sale.
The shares climbed 2.8 percent to $47.82 at the close in New York. The New York-based company slid 14 percent this year, compared with a 6.7 percent gain for the Standard & Poor’s 500 Consumer Discretionary Index.
Coach is speculated to be exploring a sale, DealReporter said today, citing two bankers it didn’t name. Andrea Resnick, a spokeswoman for Coach, said the company doesn’t comment on speculation or rumors, “particularly unsubstantiated ones.”
“I am not putting too much weight on” takeover speculation, said Corinna Freedman, an analyst with Wedbush Securities in New York. “I am not sure who would make sense for this.”
Coach’s large size limits the number of potential buyers and its small presence in Europe probably precludes interest from large European luxury companies, she said in an e-mail. Freedman rates Coach neutral, the equivalent of a hold.
The company’s North American same-store sales have declined amid economic pressure on consumers and growing competition from Michael Kors Holdings Ltd. Coach earlier this month said Victor Luis, head of its international business, would succeed Chief Executive Officer Lew Frankfort next year.