Current:Home > My$8.5 billion acquisition puts fashion giants Versace, Coach and Michael Kors under one company-LoTradeCoin
$8.5 billion acquisition puts fashion giants Versace, Coach and Michael Kors under one company
lotradecoin benchmarks View Date:2024-12-25 12:35:05
Tapestry Inc., the company that owns Coach, Kate Spade and Stuart Weitzman, is acquiring major luxury group Capri Holdings, the parent company of Versace, Jimmy Choo and Michael Kors, it announced Thursday.
The $8.5 billion deal brings together six of the largest designer brands in the world, with a presence in over 75 countries.
"The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world," said Joanne Crevoiserat, CEO of Tapestry.
The portfolio of American luxury brands may be one of a few, if not the only major competitor, to European conglomerate fashion houses like LVMH and Kering, which each own several luxury brands including Louis Vuitton, Yves Saint Laurent, Gucci, Dior and more.
While Tapestry and Capri Holdings together generated over $12 billion in revenue last year, the acquisition comes at a time when the latter has seen a downward trend in sales.
Capri reported a decrease in sales in its first quarter for the 2024 fiscal year, showing a 9.6% drop in total sales compared to Q1 last year. Versace's revenue decreased 5.8% and Michael Kors' revenue dropped by 13.8%. Jimmy Choo, however, showed an increase in revenue of 6.4%.
Capri Holdings celebrated the deal, saying it will help expand its luxury brands outside of the U.S. and provide a boost to their sales.
"By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands," said John D. Idol, the CEO of Capri Holdings.
Tapestry has not yet reported its 2024 first quarter financials, but in Q3 of 2023, it showed an increase in net revenue by 8.7%. Each of its three brands —Coach, Kate Spade and Stuart Weitzman— also saw growth in revenue compared to the year prior.
The acquisition is expected to close in 2024, as long as Capri Holdings shareholders and regulatory agencies approve the deal.
Simrin SinghSimrin Singh is a social media producer and trending content writer for CBS News.
veryGood! (295)
Related
- One Tech Tip: How to protect your communications through encryption
- Rihanna, Adele, Ryan Reynolds and More Celebs Who Were Born in the Year of the Dragon
- Kylie Kelce Reveals Whether Her and Jason Kelce's Kids Will Be at Super Bowl 2024
- Mandalorian actress Gina Carano sues Disney over firing
- California judges say they’re underpaid, and their new lawsuit could cost taxpayers millions
- Arizona governor signs bill giving counties more time to count votes amid concerns over recounts
- Watch this deployed soldier surprise his mom on her wedding day with a walk down the aisle
- Proposed mine outside Georgia’s Okefenokee Swamp nears approval despite environment damage concerns
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- Former Mets GM Billy Eppler suspended through World Series for fabricating injuries
Ranking
- Jim Leach, former US representative from Iowa, dies at 82
- Ohio city drops charges against pastor who opened his church to house the homeless
- LA Dodgers embrace insane expectations, 'target on our back' as spring training begins
- Chris Pratt has been a Swiftie 'from day one,' says wife watches NFL because of her
- Save 30% on the Perfect Spongelle Holiday Gifts That Make Every Day a Spa Day
- A stepmother says her husband killed his 5-year-old and hid her body. His lawyers say she’s lying
- Tommy Hilfiger takes over the Oyster Bar in Grand Central for a joyous New York-centric fashion show
- Leah Remini Reacts to New Beyoncé Wax Figure Comparisons
Recommendation
-
North Dakota regulators consider underground carbon dioxide storage permits for Midwest pipeline
-
See Kylie Jenner Debut Short Bob Hair Transformation in Topless Selfie
-
On Lunar New Year, what celebrating the Vietnamese Tet holiday has taught me
-
Video shows kangaroo hopping around Tampa apartment complex before being captured
-
Gen Z is 'doom spending' its way through the holidays. What does that mean?
-
Arizona gallery owner won’t be charged in racist rant against Native American dancers
-
Russian Figure Skater Kamila Valieva Blames Her Drug Ban on Grandfather’s Strawberry Dessert
-
Prince Harry Makes Surprise Appearance at NFL Honors After Visit With King Charles III
Tags
-
lotradecoin low trading fees advantage
lotradecoin professional trading tools
lotradecoin cashback program overview
lotradecoin withdrawalspeed
lotradecoin cashback program overview
lotradecoin margin trading explained
lotradecoin instant crypto swaps
lotradecoin affiliate program details
lotradecoin cashback program overview