Companies

Tapestry said to be close to selling Stuart Weitzman

Sep 11, 2024 United States

As it defends its 8.5 billion USD acquisition of Capri Holdings in court, several sources have come forward to say that Tapestry is close to selling the luxury shoe brand Stuart Weitzman

According to Footwear News, a shake-up appears to have already begun at Tapestry, as the company faces legal challenges to defend its acquisition of Capri Holdings.

The trial, taking place in the Manhattan federal court, follows a Federal Trade Commission (FCT) complaint raising concerns about possible monopoly control in the luxury handbag market. Tapestry, which owns Coach, Kate Spade and Stuart Weitzman, is looking to expand with Capri’s portfolio of Michael Kors, Versace and Jimmy Choo.

In particular, several sources have said that the luxury group is close to selling off its Stuart Weitzman brand. While the sale of Stuart Weitzman wouldn’t address the FTC's concerns, it does suggest that Tapestry is changing its business strategy. It could also provide more liquidity and help Tapestry focus on other areas.

Known for its luxury shoes, Stuart Weitzman has been struggling financially. In the fiscal year ended on the 29^th of June, the brand’s revenue fell by 14% to 241.5 million US dollars and its operating loss was 21.2 million US dollars. Tapestry has not yet commented on the potential deal, but has confirmed that the brand's CEO, Giorgio Sarné, will be leaving the company in October.

Image Credits: theimpression.com

United States Brands Capri Companies Footwear Luxury Management Stuart Weitzman Tapestry