Shares of Coach (TPR 1.50%) have jumped 8% during the past week following reports it might be an acquisition target for LVMH Moet Hennessy Louis Vuitton (LVMUY -0.11%).
Of course, nobody can be sure of LVMH's intentions at this point. But many investors understandably doubt what, exactly, the luxury-goods titan would have to gain by tucking Coach under its enormous wings. After all, despite the fact Coach is still down more than 30% so far in 2014, it's still a $9.8 billion company, and a fashion juggernaut in its own right.
There are several reasons this acquisition might make perfect sense for LVMH. The following slideshow details three of the most significant, including the status of Coach's turnaround, one key employee, and how the smaller company might fit into LVMH's bigger picture:
