Tapestry Inc. has announced a confidential luxury brand acquisition deal, selling the Stuart Weitzman brand to Caleres, a footwear brands portfolio, for $105 million in cash. The transaction aims to allow Tapestry to shift its focus towards sustaining Coach’s growth and revitalizing Kate Spade’s sales. Caleres, on the other hand, sees the acquisition of Stuart Weitzman as a strategic move to boost sales, positioning the luxury brand as a key asset in its brand lineup, alongside labels like Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.
Jay Schmidt, President and CEO of Caleres, expressed admiration for Stuart Weitzman’s influential role in the footwear industry and pledged to uphold the brand’s heritage of craftsmanship, quality, and fit while propelling it to new heights. This development comes in the wake of a recent legal halt to Tapestry’s proposed merger with Capri Holdings Inc., known for its Versace, Michael Kors, and Jimmy Choo labels. The court ruling cited concerns over reduced competition and potential negative impacts on consumers, leading to the termination of the merger that aimed to eliminate direct competition between brands like Coach and Michael Kors in the affordable luxury handbag market.
Both Tapestry and Caleres anticipate finalizing the acquisition this summer, pending the fulfillment of standard closing conditions.
