Tapestry, Inc., the parent company of brands like Kate Spade, Coach, and Stuart Weitzman, has acquired Capri Holdings Limited.
This deal will leverage Tapestry’s consumer engagement platform to drive direct-to-consumer opportunities. Capri Holdings is known for global luxury brands Versace, Jimmy Choo, and Michael Kors.
“We believe our proven and profitable direct-to-consumer first model can drive an increase in Capri’s direct-to-consumer penetration over time,” said Joanne Crevoiserat, Tapestry CEO, in a call with investors.
They will also rely on enhanced data analytics capabilities and modern technology infrastructure to drive deeper consumer engagement.
“We have a lot of opportunity to share our expertise in learning and building a modern technology platform with advanced digital capabilities, advanced marketing technology, and capabilities to attract a customer and engage customers digitally and grow our digital business,” said Crevoiserat, remarking that Capri’s lower digital penetration supplies an opportunity to increase share.
Within the $200+ billion global luxury market for apparel, handbags, footwear, and accessories, the new combined company will enhance Tapestry’s current product offerings, especially in footwear and ready-to-wear, providing opportunities for further growth and the ability to extend its global reach.
In a recent Q&A with investors, Crevoiserat remained confident in Tapestry’s capabilities to scale its data and digital platform. “We’ve leveraged that platform across our brand, and it’s really driving a lot of growth, customer acquisition … we’ve embedded those capabilities throughout our value chain and our organization from how we manage inventory all the way through to where we allocate our assortments in our stores to what product we develop for which customers, to our marketing. It’s really deeply embedded.”
This new combined company generated $12 billion in global annual sales, achieving nearly $2 billion in adjusted operating profit in the prior fiscal year. The combined company will have a presence in over 75 countries.
The deal is set to close in 2024 and will bring together over 33,000 employees globally within the new combined company.
“Today’s announcement marks a major milestone for Capri,” said John D. Idol, chairman and chief executive officer of Capri Holdings Limited. “It is a testament to all that our teams have achieved in building Versace, Jimmy Choo, and Michael Kors into the iconic and powerful luxury fashion houses they are today.” He added, “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.”