Monday's major mergers and acquisitions news likely isn't Coach's last deal, one retail analyst predicts.
The luxury handbag maker announced Monday its agreement to buy smaller rival Kate Spade in a proposed transaction valued at $2.4 billion. Rumors had already surfaced that the deal was looming, with many analysts writing in recent notes about Coach's acquisition strategy and how it could help the retailer boost sales.
"I think Coach is buying a customers' list ... that helps penetrate a larger audience," Nomura Instinet analyst Simeon Siegel told CNBC's 'Power Lunch' in an interview Monday. "[It's] buying a status."
Instead of focusing on one brand, Coach is creating a "house of modern luxury brands," which will be operated entirely independent of each other, Siegel said.
In 2015, Coach bought designer footwear company Stuart Weitzman for as much as $574 million, at a time when handbag sales were particularly weak and