Coach to Acquire Stuart Weitzman for $574 Million

Gisele Bündchen in Stuart Weitzman’s Spring 2015 campaign. Photo: Stuart Weitzman

Coach Inc., looking for a leg up in the luxury goods lineup, will acquire Stuart Weitzman, both companies announced Tuesday. The leather accessories retailer will shell out up to $574 million in cash for its first acquisition.

"Stuart Weitzman is a leading American luxury designer footwear brand with a solid growth trajectory and further significant domestic and international development potential," Victor Luis, chief executive officer of Coach, said in a statement.

Related: 11 Ways to Wear Skirts With Boots This Winter

Coach, which was founded in 1941, has been struggling to find its footing as of late in a crowded mid-priced market. Brands such as Michael Kors and Kate Spade are currently very popular with consumers, sell trendier and larger variety of items, and have encroached on the Coach’s longstanding stronghold in the accessories territory.

Adding Weitzman to their portfolio could be a profitable move considering the shoemaker’s popularity. The strategic buyout follow’s Stuart Vevers’ appointment to the creative director position in 2013 and his assignment to help the struggling company scale more upmarket.

Related: Snubbed Wet Seal Employees Start Protest

Weitzman, who counts Kate Middleton, Beyoncé, Jennifer Lawrence, and countless other celebrities, fashionistas, and shoe lovers alike as fans, will remain on in his current position. “In Coach, we have found a strategic partner that respects our culture, and offers the scale, resources and global business acumen to enable us to realize our full potential,” he said.