A new era of American luxury fashion is on the horizon. Two of the U.S.’s biggest fashion companies have joined forces and sees the New York City-based luxury conglomerate
AP reports that the deal still needs to be finalized and approved by Capri’s shareholder and should be well on its way in 2024. The two companies combined revenue from Tapestry and Capri account for $12 billion USD in over 75 countries and is expected to generate approximately $200 million USD in cost synergies within three years.
In a press release, CEO Joanne Crevoiserat of Tapestry said in a press release, “Tapestry is an organization with a passion for building enduring brands through superior design and craftsmanship and an unwavering focus on our customers. The combination of Coach, Kate Spade, and Stuart Weitzman together with Versace, Jimmy Choo, and Michael Kors creates a new powerful global luxury house, unlocking a unique opportunity to drive enhanced value for our consumers, employees, communities, and shareholders around the world.”
With the acquisition of Capri, Tapestry becomes a greater competition to the French luxury fashion conglomerates LVMH and Kering, becoming the fourth-largest luxury company in the world and second-largest in North America behind LVMH. Capri CEO John D. Idol said, “Today’s announcement marks a major milestone for Capri. We are confident this combination will deliver immediate value to our shareholders. It will also provide new opportunities for our dedicated employees around the world as Capri becomes part of a larger and more diversified company. By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”
In other fashion news, JiyongKim delivers a versatile and functional SS24 collection.