Tapestry Inc. has announced the sale of its Stuart Weitzman brand to Caleres Inc. for $105 million in cash, marking a strategic move for both companies.
The transaction, revealed on Wednesday, allows Tapestry Inc. to concentrate on enhancing its Coach brand’s growth and revitalize sales at Kate Spade. For Caleres, the acquisition of Stuart Weitzman offers an opportunity to accelerate sales, positioning the brand as a leading label within its portfolio, which includes other renowned names such as Famous Footwear and Sam Edelman.
Jay Schmidt, president and CEO of Caleres, expressed admiration for Stuart Weitzman’s impactful presence in the footwear industry. He stated, ‘As we integrate this iconic brand into the Caleres family, we are committed to upholding its legacy of superior craftsmanship and quality while driving its future expansion.’
This agreement was reached approximately four months after a federal judge halted a merger between Tapestry and Capri Holdings Inc., citing concerns over reduced competition. This merger would have affected brands like Versace and Michael Kors. The judge’s decision followed the Federal Trade Commission’s challenge to Tapestry’s $8.5 billion offer to acquire Capri Holdings, concerned about diminishing competition between major luxury brands, particularly in the affordable luxury handbag market.
Both Tapestry and Caleres anticipate the deal will finalize this coming summer, subject to standard closing conditions. This move is viewed as a pivotal shift in Tapestry’s strategy, refocusing its business goals and allowing Caleres to enhance its brand offerings.
This sale represents a significant strategic realignment for Tapestry, enabling a sharper focus on its key brands while providing Caleres with an avenue for growth through the prestigious Stuart Weitzman label.
