Categories: Economy

Giant Fusion in Fashion

Tapestry, the parent company of the Coach and Kate Spade brands, is buying rival Capri Holdings for $8.5 billion. The deal is expected to be completed in 2024.

Analysts said the merger would create a competitor in the luxury market to compete with European fashion giants.

The merger brings together “six iconic brands” that operate in more than 75 countries and generate more than $12 billion in annual revenue: Tapestry’s Coach, Kate Spade, Stuart Weitzman, Capri’s Versace, Jimmy Choo and Michael Kors.

Tapestry’s competitors will be France-based LVMH and Kering. Kering owns brands like Gucci, Yves Saint Laurent and Balenciaga.

LVMH controls Louis Vuitton, Givenchy, Christian Dior and Marc Jacobs.

After the merger, the company will be bigger and more scalable, allowing it to reach more customers around the world and compete more effectively in the luxury market, according to Tapestry CEO Joanne Crevoiserat.

Source: Sozcu

Andrew

Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.