May 8, 2017

Coach acquiring Kate Spade for $2.4B

John Minchillo / AP

Coach Inc. is buying Kate Spade for $2.4 billion, per Reuters.

  • The deal: Kate Spade announced it was considering a sale in February since it wasn't achieving competitive profit margins. Coach said it expects to work out $50 million in savings over three years from the deal.
  • The millennial appeal: Kate Spade's brightly colored handbags are popular with millennials, which could help Coach's position in the crowded market.
  • The trend: Coach bought luxury shoe brand Stuart Weitzman in 2015 after a failed attempt to create a new brand, Reed Krakoff. Coach reported strong earnings in Q3 of 2016, indicating this strategy of acquiring luxury brands might be working (compare that to Michael Kors, which decided to sell higher quality bags to remedy its dip in sales). Analysts are saying Coach's next move could be a buyout of Burburry or Jimmy Choo.

Go deeper

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1:30 p.m. ET: 887,067 — Total deaths: 44,264 — Total recoveries: 185,541Map.
  2. U.S.: Total confirmed cases as of 1:30 p.m. ET: 190,740 — Total deaths: 4,127 — Total recoveries: 7,141Map.
  3. Federal government latest: Vice President Mike Pence said that White House modeling suggests "Italy may be the most comparable area to the United States" in terms of the impact of the coronavirus pandemic.
  4. State updates: Florida and Pennsylvania are the latest to issue stay-at-home orders, totaling 34 states and D.C.
  5. 2020 update: New York is latest state to delay primary — Bernie Sanders urges Wisconsin to delay April 7 primary.
  6.  🎧 Podcast: The Defense Production Act
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

West Virginia is latest state to delay primary due to coronavirus

Photo: Barbara Davidson/Getty Images

West Virginia Gov. Jim Justice rescheduled the state's May 12 primary election to June 9 on Wednesday, citing fears surrounding the coronavirus pandemic, AP reports.

Why it matters: 23 other states and the District of Columbia haven't held primaries yet. The White House is recommending, for now, that Americans practice social distancing and gather in groups of no more than 10 people — while many states have issued stay-at-home orders.

Go deeperArrowUpdated 34 mins ago - Politics & Policy

Florida governor issues stay-at-home order

Photo: Joe Raedle/Getty Images

Florida Gov. Ron DeSantis ordered a statewide stay-at-home order on Wednesday after the number of coronavirus cases in the state rose to nearly 7,000.

Why it matters: DeSantis has been criticized for declining to order any statewide mandates to curb the spread of coronavirus as Florida — home to a significant elderly population — has increasingly become a hotspot. The order will go into effect Thursday at midnight and last for 30 days.

Go deeperArrow35 mins ago - Health