Tapestry Inc. finalized a $105 million cash deal to sell its Stuart Weitzman brand to footwear conglomerate Caleres. The move allows Tapestry to prioritize revitalizing its core brands, Coach and Kate Spade, while Caleres gains a high-end anchor for its expanding portfolio. Analysts predict this strategic divestiture could intensify competition in the affordable luxury sector.
Caleres CEO Jay Schmidt emphasized the acquisition’s significance:
Stuart Weitzman’s legacy in footwear innovation aligns perfectly with our vision. We’ll preserve its craftsmanship while scaling its market presence.The company’s existing brands include
- Famous Footwear
- Sam Edelman
- Allen Edmonds
- Naturalizer
The transaction follows Tapestry’s failed $8.5 billion Capri Holdings merger, blocked by U.S. regulators over monopoly concerns in January 2024. FTC officials argued combining Coach and Michael Kors would stifle competition in mid-tier luxury accessories. Industry watchdogs now scrutinize whether Caleres’ expansion might reshape footwear pricing dynamics.
Both companies expect the Stuart Weitzman transfer to finalize by late summer 2024. Market analysts suggest Tapestry could reinvest proceeds into Kate Spade’s digital rebranding, while Caleres may leverage Weitzman’s luxury appeal to elevate its other labels.
