Tapestry, the multinational luxury company and parent company of fashion brands like Kate Spade and Coach, is changing the landscape of luxury with its acquisition of Capri Holdings.
Capri Holdings, which owns luxury brands the likes of Versace, Jimmy Choo, and Michael Kors, is set to be acquired by Tapestry in 2024 through an $8.5 billion merger deal.
The Future of the Luxury Market
The unification will make Tapestry a luxury fashion house giant, with more than $12 billion in annual sales across 75 countries worldwide.
"From this position of strength, we are ready to leverage our competitive advantages across a broader portfolio of brands," Tapestry CEO Joanne Crevoiserat noted in a press statement last week.
"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," added Crevoiserat.
Luxury companies have seen an unstable comeback following the pandemic as consumers lost trust in luxury brands, with personal luxury brands taking the biggest hit.
Tapestry and Capri Holdings Take Hold of Luxury
The acquisition of Capri Holdings by Tapestry will create the potential for an upscale in revenue within the luxury market.
Tapestry aims to apply its brand strategy approach to Capri Holdings' fashion brands, while Capri offers Tapestry access to the footwear and ready-to-wear fashion categories through its established brand portfolio.
After all, diversifying Tapestry’s brand portfolio with this $8.5 billion acquisition may be what it takes to alter the current position of the luxury industry.
Edited by Nikola Djuric