NEW YORK (TheStreet) -- Coach Inc. (COH) shares are up 2.2% to $35.22 on Friday after the luxury fashion brand was rumored to be a takeover target by rival LVMH Moet Hennessy Louis Vuitton (LVMUY) .
Coach, which has declined 40% so far this year, closed Thursday's trading session up 2.5% at $34.36 following a report in Prime Retailers suggesting that LVMH, the maker of Louis Vuitton, was looking to acquire the company.
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"Even though LVMH has expressed its interest to acquire more brands, it's unclear whether with Coach there's a potential acquisition looming or it's more of a competitive interest. Given the profiling of LVMH and recent developments with Coach, former is suspected," the website said.
Coach has posted declining revenue for five straight quarters.
TheStreet Ratings team rates COACH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate COACH INC (COH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow."