Coach Owner Tapestry Acquires Michael Kors Owner Capri In $8.5 Billion Deal

By Valentine Fabre

Coach’s parent company, Tapestry has announced the acquisition of Capri Holdings which owns Michael Kors, Versace, and Jimmy Choo, in a race to compete with European luxury giants.

Announced on August 10th, the deal will allow Tapestry, originally Coach Inc, to take control over Jimmy Choo, Michael Kors, and Versace for a total of $8.5 billion. The parent company, which changed its name to Tapestry in 2017, also owns Kate Spade and Stuart Weitzman. By acquiring Capri Holdings, the company asserts its desire to catch up with Europe’s head start in the luxury fashion sector.

Currently valued at $10 billion, Coach’s parent company aims at competing with luxury giants Kering ($72 bln) and even LVMH, who currently own 75 brands (including Tiffany & co since its acquisition in 2021 for $16 bln), which in turn is valued at $456 bln.

Capri Holdings, which was originally established by Michael Kors in 1981, purchased Jimmy Choo Ltd in 2017, the same year Coach Inc changed its name to Tapestry and purchased Kate Spade. The deal aims at making Tapestry a top U.S. fashion house whilst “bringing together six highly complementary brands with global reach” as stated by the company. This acquisition will allow them to be present in 75 countries and generate global annual sales of over $12 billion.

Both parties have addressed their satisfaction with the deal. “It will provide new opportunities for our dedicated employees around the world, as Capri becomes part of a larger and more diversified company” describes Capri Holdings’ CEO, John D. Idol. Tapestry's acquisition of Capri Holdings is a defining moment in the fashion industry, showcasing the resilience and adaptability of these brands in an ever-changing market. This merger not only expands their influence but also sets a precedent for what collaboration and innovation can achieve.

As the fashion world watches this dynamic partnership unfold, it's clear that the future of luxury fashion will be shaped by the shared vision, creativity, and commitment of these iconic brands.