Tapestry, a luxury goods group renowned for brands like Coach and Stuart Weitzman, is set to acquire Capri Holdings, the company that owns Versace, Michael Kors, and Jimmy Choo. This deal, valued at $8.5 billion (£6.7 billion), aims to establish a robust global luxury powerhouse.
Industry experts have noted the acquisition significantly fortifies the brands’ position in the premium fashion arena.
LVMH and Kering, both based in France, wield influence over elite luxury brands, spanning fashion, leather goods, and jewelry. Brands like Gucci, Yves Saint Laurent, Louis Vuitton, and Givenchy fall under their respective umbrellas.
Tapestry’s own brands are known for their relatively more accessible pricing. Analysts believe this merger will bolster Tapestry’s market presence by uniting brands that share a similar price range, catering to diverse consumer segments.
The luxury fashion industry is navigating inflation-related consumer spending constraints, adding another layer of complexity. Aspirational consumers are particularly affected by the recent economic environment, marked by elevated inflation rates, interest rates, wages, and supply chain disruptions.
Notably, this marks the second time in five years that Versace has changed hands. In 2018, Michael Kors acquired the Italian brand, along with Jimmy Choo, and placed them under the umbrella of Capri Holdings, forming a new entity in the luxury fashion realm.
The deal is projected to conclude in 2024.
