The Federal Trade Commission is seeking to block Tapestry's $8.5 billion acquisition of Capri, which would put six brands including Michael Kors and Coach under a single company.NEW YORK CITY — In a federal courtroom on Monday, storied fashion designer Michael Kors spoke about the steep challenge of staying relevant in a world where brands can rise and fall based on viral TikTok videos and photos of handbags on the arms of celebrities such as Taylor Swift and Beyoncé.
Attorneys for Tapestry and Capri, on the other hand, have questioned the FTC's depictions of a consolidated handbag market. They have said competition has grown as customers consider both pricier luxury brands and lower-priced fast-fashion names, and can shop from online-only platforms and secondhand marketplaces.
Shares of Capri, which includes Michael Kors, reflect the tougher stretch that the designer Kors described. As of Monday afternoon, the company's stock has fallen about 24% so far this year. That trails far behind the roughly 18% gains of theIn its most-recent fiscal quarter that ended in late June, Michael Kors' revenue dropped 14.2% on a reported basis or 13.3% on a constant currency basis compared to the year-ago period.
For instance, he said he learned about Aupen, a handbag industry newcomer, when he saw a photo of Taylor Swift carrying one of the company's handbags. When he went to the company's website, it crashed, he said., said the department store's sales got hit because it leaned too heavily on Michael Kors' brand. He said the markdown of Michael Kors' handbags contributed to"a bad spiral Macy's was living through when I was there.
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