Tapestry (TPR.N) has announced its decision to sell the Stuart Weitzman brand to Caleres (CAL.N) for $105 million in cash. This move aligns with Tapestry’s strategy to focus on growth within its organic business, especially after a derailed $8.5 billion merger deal with Capri (CPRI.N).
Despite strong demand for Coach’s Tabby handbags during the holiday quarter, Stuart Weitzman faced challenges due to weak luxury spending in North America and China. The brand, which constituted about 3.6% of Tapestry’s total annual revenue, reported a full-year loss that increased to $21.2 million from $6.7 million the previous year.
Caleres CEO Jay Schmidt emphasized that Stuart Weitzman will be a lead brand for the company. He noted that this acquisition will enable the brand portfolio segment to generate nearly half of Caleres’s total revenue and more than half of its operating profit. Following its integration, the brand is expected to return to profitability.
Caleres, which also owns luxury footwear brands such as Sam Edelman and Vince, operates nearly 1,000 retail stores across the United States. The deal is anticipated to close in the summer of 2025, with Caleres planning to finance the acquisition through its revolving credit agreement. BofA Securities is serving as the financial advisor for Caleres, while Morgan Stanley & Co. LLC is advising Tapestry.
