This week’s gorgeous briefing: The fallout from the failed tapestry Capri merger continues, with the tapestry reportedly selling Stuart Weitzmann and Capri. Also news on knowledge and gorgeous executive moves. If you have any comments about this briefing or tips for future editions, please email zofia@glossy.co.
The dream of an American luxury conglomerate is dead – at least for now. The companies are restructuring their brand portfolios after a federal judge blocked the $8.5 billion tapestry capri merger last year. Among the latest moves is the tapestry off-roading Stuart Weitzman off-roading to Currail for $105 million as of February 20th. Capri reports that he is considering selling Versace and Jimmy Chew.
Tapestry acquired Stuart Weitzman in 2015 for $574 million, but struggled to drive profitability. The brand saw a 16% decline in sales in the second quarter of 2025, with an annual loss of $21.2 million. Sales to Calleres are expected to end this summer. With Stuart Weitzman leaving the book, the tapestry will focus on coaches and Kate Spade. Coach was boosted by 10% revenue to $1.7 billion in the second quarter, boosting Z-demand General. Meanwhile, Kate Spade faced headwinds, with 10% sales falling to $416.4 million, prompting a strategic reset. Tapestry did not reply to requests for comment.
Meanwhile, the merger death will allow Capri to sell Versace and Jimmy Chew to increase the value of its shareholders, according to industry insiders. Sources show potential buyers are already circling, including Prada Group, which has not acquired the company since the 1990s. Prada has been granted exclusive access to Versace’s finances for four weeks as of February 19th. While the deal expands Prada’s reach, Versace’s decline in revenue and uncertain valuations can complicate negotiations. Jimmy Chu, Versace and Prada will be unveiling their latest collections at Milan Fashion Week, which begins on February 24th. The Miu Miu, owned by the Prada Group, will be exhibited in Paris on March 11th.
The Tapestry-Capri trade was first announced in August 2023 as an attempt to form a high-class US powerhouse. By April 2024, the FTC had sued to block trades citing concerns over competition in the affordable luxury handbag market. In October, a federal judge opposed the merger, monitored it under the FTC, and by November Tapestry and Capri officially ended the contract.
Brian Yarbra, an analyst at Edward Jones, who covers Edward Jones’ tapestry, told Glossy in November that the company blocked the contract because he always saw it as a poor decision. .
“In retail acquisitions, success stories are rare,” Yarbrough said. “Kate Spade and Stuart Weitzman are struggling while their coaches are on track. Adding three more low-performing brands, only one of the six strong performers left the tapestry behind. It must have been.
The merger behind it failed, and Capri is now in a period of readjustment. On Investor Day on February 19th, CEO John Idol emphasized that the company’s focus is on “product innovation, impactful marketing and right-sizing of the retail fleet.”
If Versace and Jimmy Chew are on the market, it could be a sign that Capri is considering simplifying operations and putting more weight behind its most important revenue driver, Michael Kors .
Ohana & Co. According to Ariel Ohana, managing partner of the company, advised on some of the biggest luxury M&A deals, the challenges of the luxury shoe market go beyond just corporate restructuring. “The wholesale channel has been closed or restructuring at major luxury retailers, including the merger of Farfetch, Matches, Net-A-Porter and Saks-Neiman. Many luxury shoe brands rely heavily on this channel. “We’ve been forced to rethink our distribution model,” he told Glossy.
It is a broader consumption shift that exacerbates the problem. “Shoes with heels are losing their favor, especially with Gen Z, where comfort and practicality are prioritized,” he said. “Apparel is not the only trend for “athlete.” It is reflected in footwear as well. Running and New Balance Golden Goose all see double-digit revenue growth, but the brand focuses on high heels like Jimmy Chew, but it’s struggling. ”
On the other side of the transaction, Caleres is strategically strengthening its portfolio. Caleres is known for its famous footwear brands such as Sam Edelman, Allen Edmonds and Naturaliser. In November 2024, the company appointed Nancy Vicette as SVP of the New York brand, including Franco Salto, Vince and Veronica Beard, to “accelerate growth and increase profitability within the Caleres brand portfolio.” We are aiming for this. In a brand statement, CEO Jay Schmidt said, “Entreating extraordinary leadership is a key component of our strategic priorities.”
Positioned as the Lead Caleres brand, Weitzman is expected to drive nearly half of the company’s total revenue and contribute to a majority of operating profit. Caleres plans to leverage proven footwear expertise to expand its brand across categories and channels, focusing on post-integration profitability. CEO Jay Schmidt worked with both Tapestry and Stuart Weitzman teams to highlight the company’s commitment to a smooth transition.
The rewind of the Tapestry-Capri transaction forced both companies to rethink their future. In the case of Tapestry, the strategy has become clear. It streamlines operations and focuses on core brands, coaches and Kate Spade. For Capri, the outlook is less certain. If you’re following the sale of rumors from Versace and Jimmy Choo, you can show a pivot to a more manageable portfolio centered around Michael Kors. In the second quarter of fiscal year 2025, Michael Kors revenue fell 16% year-on-year to $738 million, with operating income falling to $87 million from $169 million the previous year.
But it also raises a greater question: Has the American LVMH dream finally been abandoned?
“Transforming monobrand companies into multi-brand groups is a huge cultural change,” Ohana said. “Coach and Michael Kors were both built as singular and dominant brands. Adding small brands and brands from different markets will result in management focus and brand strategy, including footwear Weitzmann and gorgeous Versace. Sometimes companies are pursuing this strategy, but not because it’s the best for the brand, but because the pressure in the open market forces them to find new growth levers when the core business plateau. Because it’s because it’s.’
Executive Movement
Kering is promoting Mélanie Flouquet, now Chief Strategy Officer, to the General Secretary on March 1st. She will focus on strengthening group governance, risk management and regional integration. Nordstrom has appointed veteran Neiman Marcus stylist Catherine Bloom as director of luxury styling. In the step, we transformed Melrose Place Nordstrom Local into a dedicated “Catherine Bloom for Nordstrom” space to host clients.
Revenue
Alibaba recorded a strong third quarter on February 20th, leading to a surge in AI demand and steady e-commerce growth. Revenue for the three months ended December 31st increased 8% year-on-year to RMB 280.1 billion ($38.3 billion), exceeding analyst expectations. Profits skyrocketed 239% to RMB 48.9 billion ($6.7 billion), driving expansion of AI infrastructure and higher returns from equity investments. Alibaba’s e-commerce business, Taobao and Tmall, saw revenues rise to 5%, with 136 billion yuan ($18.6 billion), but their expensive 88VIP loyalty program has risen double digits It reached 49 million members.
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