Coach and Versace's parent companies are combining in an $8.5 billion deal | CNN Business

  • 📰 cnni
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 59%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Michael Kors and Kate Spade are about to become siblings

Tapestry Inc., which owns Kate Spade and Coach, announced Thursday that it’s acquiring Capri Holdings, the parent company of Michael Kors and Versace. The $8.5 billion deal could help them better compete against their higher-end European rivals. Once the deal closes, slated for the end of 2024, the combined business will consist of “six highly complementary brands with global reach,” the companies announced, with projected annual sales of more than $12 billion across more than 75 countries.

and Kering, which are highly successful at nurturing brands which appeal to different segments of the market,” he said. “The large luxury houses also have a vast pool of common management and operational capacity that they can use across their brands in an efficient and effective way.” However, spending on luxury good has slowed in recent quarters, especially in the United States.

Chief Financial Officer Jean-Jacques Guiony said last month that “aspirational customers are not shopping as much as they used to,” as sales slid 1% compared to the same quarter a year prior. Those warning signs have “put pressure on Tapestry and Capri, both of which are now looking to international markets to bolster growth,” Saunders said. “There is more security in embarking on bold international plans as a larger entity.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 326. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tapestry near deal to buy Capri, parent company of Michael Kors and Versace: reportFashion company Tapestry Inc. is close to a deal to buy Capri Holdings Ltd., the parent company of Michael Kors, Jimmy Choo and Versace, the Wall Street...
Source: MarketWatch - 🏆 3. / 97 Read more »

Coach owner to aquire Michael Kors, Versace parent company for $8.5BThe deal would create an American fashion giant that brings Coach, Kate Spade, Stuart Weitzman, Versace, Jimmy Choo and Michael Kors under one house.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »