Luxury conglomerate Tapestry, which owns Coach, Kate Spade, and Stuart Weitzman, is facing financial challenges amid difficulties surrounding its proposed merger with Capri Holdings. The US Federal Trade Commission (FTC) has sued to block the merger, claiming it would reduce competition between the two companies. With this major deal in limbo, Tapestry’s Q3 2024 financial results have displayed a decline in key metrics: net sales fell from $1.51 billion to $1.48 billion, operating income declined from $226.3 million to $204.3 million, and net income dropped from $186.7 million to $139.4 million. GlobalData highlighted that the sluggish performance underscores Tapestry’s need for the acquisition to boost its economic standing, despite the high price for Capri and the FTC’s intervention potentially undermining the strategy. This comes at a time when M&A activity in the apparel sector has been decreasing since its peak in 2022.
Luxury Goods, Apparel, Mergers & Acquisitions,United States
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