The merger of two American fashion conglomerates cements their place as a frontrunner in the industry.
Coach and Michael Kors are two of the most well-known contemporary designer brands. Both are well-received by the public and bought by a huge niche market. So it came as a surprise when Tapestry, Coach’s parent conglomerate, bought Michael Kors’ parent company, Capri Holdings. It was reported that an $ 8.5B deal was made for the acquisition.
Tapestry, is a United States-based multinational luxury fashion holding company. The company is slowly taking root as one of the biggest fashion conglomerates with this buyout. Under their umbrella are designer brands such as Coach, Kate Spade, and Stuart Weitzman.
On the other hand, Capri Holding is also a multinational fashion conglomerate. Named as the first U.S. luxury fashion conglomerate after acquiring Versace in 2018. Capri Holdings before their big acquisitions of Versace and Jimy Choo was named after their flagship brand Michael Kors.
“We’re broadening and diversifying our customer base … that deepen our access to luxury consumers and market segments,” Tapestry’s CEO Joanne Crevoiserat said. The merger would establish the US as one of the leaders in fashion—going against big European conglomerates such as LVMH and Kering.
Moreover, Tapestry has a market capitalization of about $10 billion. Capri is worth about $4 billion. Though these numbers are still a far cry from the valuation of their European counterparts, it is still considered as a huge acquisition for the American fashion market.
Banner photo via Instagram @coach.