Menu
Capri Holdings Limited (CPRI): $38.22
Market Cap: $4.50 B
Capri and Tapestry went to trial this week, seeking to complete their merger and survive in a highly competitive marketplace. The merger would bring together Tapestry—the owner of Coach, Kate Spade, and Stuart Weitzman—and Capri, the parent company of Michael Kors, Versace, and Jimmy Choo. At the heart of the FTC’s case is the concern that the consolidation of certain handbag brands in the “affordable luxury market” could lead to higher prices for customers.
The hearing began Monday and will determine if District Judge Jennifer Rochon rules in favor of the FTC, blocking the merger between the two fashion houses.
The first person to testify was John Idol, CEO of Capri Holdings, who stressed that Michael Kors and Capri are struggling and can’t afford to delay the deal. Idol blamed Capri’s recent decline on tough competition, arguing that both Michael Kors and Coach must constantly fight to maintain market share. He emphasized that this rivalry is a core part of Tapestry and Capri’s defense—that the handbag market is highly competitive.