Photo: Juicy Couture and Lucky Brand Ads
Rumor has it that Juicy Couture and Lucky Brand which are owned by Fifth & Pacific Cos Inc. (f/k/a Liz Claiborne Inc.) is on the market. Juicy Couture which popularized velour track suits about ten years ago has since been in a decline from its peak. Lucky Brand, known for their jeans and leather products with a bohemian feel, has also been in a slump.
The company has been quietly shopping the labels to prospective buyers, including some located in Asia, to better determine the level of interest in Juicy. Meanwhile, private equity firms Sycamore Partners and TSG Consumer Partners have expressed interest in Lucky Brand as both firms specialize in consumer and retail investments. It's good news for Fifth & Pacific that this is likely turning out to be an active sales process.
A spokesperson for Fifth & Pacific said, "We do not comment on market speculation or rumors."
Most investors believe Juicy and Lucky Brand are weighing down the valuation of the company and that Fifth & Pacific needs spin off Kate Spade so that it may be compared directly with other high-growth labels such as Michael Kors and Tory Burch. Investors have high hopes for Kate Spade which has not yet reached its full growth potential in the U.S. and abroad. Kate Spade's fourth quarter sales were up 27 percent while Lucky Brand was only up 3 percent and Juicy actually fell 2 percent. Investors are saying that Fifth & Pacific may be worth more after selling the two brands. We will have to wait and see but perhaps not for long.
Read More:
WWD (subscription req'd): Fifth & Pacific Exploring Options
Reuters: Juicy Couture owner may put brand up for sale - sources
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