Global fashion house Tapestry has agreed to sell its luxury footwear brand, Stuart Weitzman, to Caleres in $105m cash deal.
With this acquisition, Caleres strengthens its leadership in women’s fashion footwear while Tapestry will sharpen focus to fuel growth at Coach and Kate Spade.
Stuart Weitzman, headquartered in New York City, has been manufacturing luxury women footwear but recently broadened its product range to include handbags and men's shoes.
The divesture comes as Stuart Weitzman recorded a decline in revenue during the fiscal second quarter ending 28 December 2024, with sales falling 15% to $69.7m from $82.2m in the previous year.
This transaction is subject to customary adjustments and marks a significant shift in Tapestry's brand portfolio.
Tapestry CEO Joanne Crevoiserat stated: "Stuart Weitzman is an iconic global footwear brand, whose teams have added to the passion, creativity and craftsmanship of our organisation over the last decade.
"Importantly, as diligent stewards of our portfolio and disciplined allocators of capital, this transaction ensures that all our brands are positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities.
“At Tapestry, this means harnessing our position of strength to sustain Coach’s leadership and momentum while reinvigorating Kate Spade to drive durable organic growth and shareholder value. At the same time, we are pleased that we found Stuart Weitzman a home in Caleres – an ideal owner to guide its next chapter of growth.”
Caleres will finance the acquisition using its revolving credit facility.
Further information about the integration strategy and the financial implications of the acquisition will be shared once the transaction is complete in the summer of 2025.
Caleres has provided an update for its fiscal year ending 1 February 2025.
The company anticipates that its consolidated net sales and earnings per diluted share will align with previous forecasts, and will release its earnings report on 19 March 2025.
Caleres president and CEO Jay Schmidt said: “The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach. Stuart Weitzman will be a lead brand for Caleres, and with this combination the Brand Portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit.
“We expect to operate the brand profitably post-integration and I look forward to partnering with both the Tapestry and Stuart Weitzman teams for a seamless and successful transition.”
In November 2024, Tapestry officially terminated its merger agreement with Capri Holdings, owner of Versace, Jimmy Choo and Michael Kors.
