Tapestry's Acquisition of Capri Holdings Creates US Luxury Powerhouse to Compete with European Rivals
Coach Parent's $8.5 Billion Deal Aims to Bolster American Luxury Presence on Global Stage Tapestry's Strategic Move: Acquiring Capri Holdings to Bolster US Luxury Standing In a significant development, the parent company of Coach, Tapestry, has unveiled plans to acquire Capri Holdings, the owner of Michael Kors, in a groundbreaking deal valued at $8.5 billion. This strategic move aims to form a formidable American fashion entity that can effectively compete with larger European counterparts, striving for a greater market share in the global luxury sector. U.S.-based luxury brands have long trailed behind their European counterparts in terms of scale, limiting their competitive edge. The towering Paris-listed LVMH, for instance, possesses an impressive portfolio of 75 brands, including renowned names like Tiffany, Louis Vuitton, and Dior. This deal, announced on Thursday, not only unifies Capri Holdings with Tapestry but also consolidates Tapestry's more accessible luxury br...