Coach Inc shares rose the most in four months, with traders citing a retail industry news website report that French luxury products company LVMH Moet Hennessy Louis Vuitton SA was interested in buying the handbag maker. LVMH has been attracted by Coach's turnaround efforts to move from selling classical high-end luxury accessories to ready-to-wear apparel, primeretailer.com said, citing sources. Coach said it did not comment on rumors and speculation. LVMH declined to comment.
Coach, founded in 1941 in a Manhattan loft, has reported declining sales for five quarters in a row, losing market share to newer entrants such as Michael Kors Holding Ltd and Kate Spade & Co. The company's recent fashion shows and products, however, have appealed to LVMH's design team, one of the sources told primeretailer.com: "Even though LVMH has expressed its interest to acquire more brands, it's unclear whether with Coach there's a potential acquisition looming or it's more of a competitive interest. Given the profiling of LVMH and recent developments with Coach, former is suspected."