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Coach has made an aggressive push to polish the image of its namesake brand, scaling back on its distribution in department stores and relying less on the discounts it had used to get shoppers to buy the brand. But to power future growth, it's begun to build an empire of luxury brands. The company bought shoe maker Stuart Weitzman in 2015 in a deal valued up to $574 million, but the Kate Spade brand is its biggest acquisition yet. It comes as the overall luxury business is being challenged by affluent shoppers who have lots of online options to buy status goods. "The acquisition of Kate Spade is an important step in Coach's evolution as a customer-focused, multi-brand organization," Luis said in a statement. "The combination enhances our positon in the attractive global premium handbag and accessories, footwear and outerwear categories." Last month, the company hired Joshua Schulman, who had been president of Neiman Marcus's Bergdorf Goodman division and the former CEO of Jimmy Choo, and put him in the new position of president and CEO of the Coach brand. Analysts saw that as a step toward a new company structure with a number of distinct brands under one umbrella, with each brand chief reporting to Luis. Schulman officially begins his job on June 5. Coach executives said the company will not be looking at any other major acquisitions for now and will limit any purchases to smaller ones. Kate Spade executives said they see big opportunities to tap into the Coach brand's expert supply network in leather goods as well as Stuart Weitzman's established supply network in footwear to cut back on costs. Coach also plans to expand Kate Spade's distribution in Asia and Europe, taking advantage of its strong overseas network.
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10, 2017, file photo, Ivanka Trump, right, walks with her husband, Jared Kushner, senior adviser to the president, to a news conference with President Donald Trump and Japanese Prime Minister Shinzo Abe, at the White House in Washington. Ivanka Trump's company continues to grow. Ethics lawyers fear the more her business expands, the more it may encroach on her ability, and husband, Jared Kushner, to credibly advise the president on core issues. Retailers are finding themselves walking a fine line when dealing with the politically charged Ivanka Trump brand, which is stamped on everything from pants to shoes to handbags. Carry the items and get grief from shoppers opposed to President Donald Trump and his daughter's role in the White House. Pull the brand because it's not selling, and risk facing the ire of Trump supporters and becoming a Twitter target. Many retailers are opting for a Switzerland strategy: Avoid taking sides while trying to do what's best for business. "No choice is a good choice because they are going to upset lots of shoppers no matter which way they go," said Allen Adamson, founder of the firm BrandSimpleConsulting. "That's why they're a deer in headlights.
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