Burberry Group Plc shares rose the most in almost eight months after the
Betaville financial blog said Coach Inc. is considering merging with
the British trench coat maker. Burberry
Group Plc shares rose the most in almost eight months after the
Betaville financial blog said Coach Inc. is considering merging with the
British trench coat maker. Start your day with what’s moving markets. Get our markets daily newsletter.
“A merger of Coach and Burberry would primarily be a merger of problems,” Exane BNP Paribas analyst Luca Solca said in a note. “M&A history in luxury has shown that mergers don’t obviously help in regaining brand traction and desirability.”
Burberry and Coach are both grappling with a slowdown in luxury spending, and have reshuffled management to try and turn their fortunes around. Burberry has named Marco Gobbetti to replace Christopher Bailey as CEO next year, while Coach named Valentino veteran Wendy Kahn to run designer shoe brand Stuart Weitzman, which it bought last year.