It looks as if Kors is trying to replicate the "brilliant" move Coach (COH) made earlier this year when it bought Kate Spade (KATE) for $2.4 billion, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on CNBC's "Mad Dash" segment.
Cramer also said Michael Kors is overpaying for Jimmy Choo. He questioned whether the move was really worth the money. He also questioned the product, pointing out that Jimmy Choo is a pretty expensive brand and one that many consider a casualty in the demise of mall-based retailers.
"This is the kind of thing where you're just buying anything, I think, to become more relevant," he said, prompting the question of whether Michael Kors needs a lifeline. "I think it's a fight for relevance in a modern-day era where people are just not shopping for this stuff," he added.
This isn't a problem exclusive to Michael Kors. Coach has this problem, L Brands (LB) , too, he said. But there's a difference between what Kors did and what Coach did, Cramer concluded
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