"Coach Parent Company Tapestry on the Verge of Acquiring Capri Holdings"... Will Luxury Brands Merge in Large Numbers?

"Several Months of Discussion... Announcement Expected as Early as the 10th"
Tapestry Draws Attention as Potential Leading US Fashion Group

On the 9th (local time), the Wall Street Journal (WSJ), citing sources, reported that Tapestry, the parent company of the American fashion brand Coach, is in the final stages of negotiations to acquire Capri Holdings, which owns other American fashion brands such as Michael Kors, Jimmy Choo, and Versace.

According to the report, Tapestry and Capri have been conducting acquisition negotiations over the past several months. Capri had originally planned to announce its Q1 2023 fiscal results on the 8th but postponed the announcement to the morning of the 10th without providing any specific reasons. Sources expect the acquisition to be confirmed and announced as early as the 10th.

[Image source=Reuters Yonhap News]

Founded in 1981 by American designer Michael Kors, who named the company after himself, the company thrived until it changed its name to Capri in 2019. Michael Kors Holdings went public in 2011 and acquired designer shoe brand Jimmy Choo in 2017 and Italian fashion brand Versace in 2018.

Capri's current market value is around $4 billion. Until early 2014, Capri's value had risen to as much as $20 billion but has since plummeted due to business deterioration and poor performance. This year, after the company warned that sales performance was lower than expected, its stock price has dropped by 40%.

Tapestry, which is pushing for the acquisition, is valued at $10 billion in market capitalization.

If the acquisition is confirmed, Tapestry is expected to become a leading American fashion brand company. While major European fashion companies such as LVMH, the largest European company by market capitalization and the world's top luxury empire, and French luxury group Kering, which owns the Gucci brand, are expanding their portfolios by acquiring various brands, American brands are also consolidating under one company.

Previously, LVMH acquired jewelry company Tiffany & Co. in 2021, and Kering recently signed a contract to acquire a 30% stake in the Italian luxury brand Valentino for 1.7 billion euros (approximately 2.4 trillion KRW). Last year, Kering attempted to acquire the American fashion brand Tom Ford but failed due to competition with the beauty brand Est?e Lauder.

This content was produced with the assistance of AI translation services.