On February 19, Tapestry, Inc. (NYSE: TPR) announced that it had signed an agreement to sell its luxury footwear brand Stuart Weitzman to Caleres (NYSE: CAL), a leading company in the footwear industry. The sale price is $105 million, and the transaction is expected to be completed in the summer of 2025.
Tapestry’s Portfolio Strategy and Future Outlook
Founded in 1986, Stuart Weitzman is a New York-based luxury footwear brand globally recognized for its refined design and functionality. The brand is best known for its “5050” over-the-knee boots, loved by Hollywood celebrities and royal families, as well as its elegant strappy sandals. Committed to craftsmanship and comfort, the brand has also expanded into handbags and men’s footwear in recent years, aiming to broaden its market reach.
Joanne Crevoiserat, CEO of Tapestry, Inc., stated: “Stuart Weitzman is an iconic global footwear brand, whose teams have added to the passion, creativity, and craftsmanship of our organization over the last decade. Importantly, as diligent stewards of our portfolio and disciplined allocators of capital, this transaction ensures that all our brands are positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities. At Tapestry, this means harnessing our position of strength to sustain Coach’s leadership and momentum while reinvigorating Kate Spade to drive durable organic growth and shareholder value.”
The company has made it clear that it will maintain Coach’s brand leadership while revitalizing Kate Spade, focusing on sustainable organic growth.
Under Caleres’ Leadership
Meanwhile, Jay Schmidt, CEO of Caleres, commented, “I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry. As we bring this iconic brand into the Caleres portfolio, we are committed to preserving its legacy of craftsmanship, quality and fit while driving it forward. The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach.”
Caleres, which owns brands such as Famous Footwear, Sam Edelman, and Allen Edmonds, is a major player in the industry. The company aims to leverage Stuart Weitzman’s luxury positioning and craftsmanship to enhance its brand value further.
The Background of the Sale – Changes in the Luxury Footwear Market
This transaction is part of Tapestry’s strategy to focus on its core brands and optimize capital allocation. Initially, the company had announced plans to acquire Capri Holdings—which owns Michael Kors, Versace, and Jimmy Choo—for $8.5 billion. This move was intended to compete with European luxury conglomerates like LVMH and Kering.
However, in October 2023, the U.S. Federal Trade Commission (FTC) challenged the acquisition, arguing that it would reduce market competition and potentially lead to higher prices. Following this opposition, Tapestry and Capri Holdings mutually agreed to terminate the merger agreement in November 2023.
With this decision, Tapestry has reaffirmed its commitment to focusing on its current portfolio, particularly the growth of Coach and Kate Spade.
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