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Coach Sinks After Kate Spade Acquisition Weighs on Forecast

  • Handbag maker projects lower profit this year than estimated
  • Coach bought Kate Spade in July to appeal to more millennials
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David Schick, Consumer Edge Research LLC analyst, discusses the selloff in Coach Inc. shares with Bloomberg's Vonnie Quinn on 'Bloomberg Markets.' (Source: Bloomberg)

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Coach Inc.’s acquisition of handbag rival Kate Spade & Co. is proving to be a difficult task.

The company gave a weaker annual forecast than Wall Street had predicted, hurt in part by efforts to burnish the Kate Spade brand by pulling it out of many department stores. That sent the shares down the most in 4 1/2 years on Tuesday.