Tapestry Acquiring Versace

Versace Cruise 2024

Tapestry, the parent company of Coach, is set to acquire Capri Holdings, the owner of Michael Kors, in a substantial $8.5 billion deal. This move is aimed at enhancing Tapestry's competitive position in the luxury fashion market, particularly in comparison to European luxury giants.

This strategic acquisition will significantly expand Tapestry's portfolio, introducing Capri's renowned brands, including Versace, and Jimmy Choo, to Tapestry's existing array of brands.

For several years, American fashion conglomerates have been striving to catch up with their European counterparts in the realm of "big luxury." Companies like LVMH and Kering in Europe have enjoyed considerable advantages in terms of scale, from retail and marketing to their ability to attract top talent. They have consistently expanded their brand portfolios, as evident in Kering's recent acquisition of a 30 percent stake in Valentino and LVMH's $16 billion purchase of Tiffany in 2021.

In response, American fashion players have also sought to bolster their positions. Tapestry, previously known as Coach Inc, acquired Kate Spade for $2.4 billion in 2017. In the same year, Capri, formerly Michael Kors, purchased Jimmy Choo for $1.2 billion. The subsequent year, Capri acquired Versace for $2.2 billion. However, American fashion groups remain notably smaller compared to their European counterparts. For instance, Tapestry has a market capitalization of approximately $10 billion, while Capri is valued at around $4 billion. In contrast, Kering is valued at about $72 billion, and LVMH, the industry leader with 75 brands, has a market capitalization of $456 billion.

Discover Versace and more at Splash Boutiques.