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.
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