Calares To Buy Stuart Weitzman Brand From Tapestry
Footwear brand company Calares is set to acquire Stuart Weitzman for $105 million.
Owned by lifestyle brand company Tapestry, which includes Coach and Kate Spade New York under its umbrella, Stuart Weitzman is a designer and manufacturer of high-end shoes, boots, and sandals for women.
The move fuels Caleres’ strategy of gaining market share in women’s fashion footwear. Caleres owns such brands as Dr Scholl’s, Famous Footwear, Sam Edelman, Blowfish Malibu, and others.
“The acquisition of Stuart Weitzman advances our strategic agenda to grow our brand portfolio segment with more global and direct-to-consumer reach,” said Jay Schmidt, president and CEO of Caleres. “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.”
Tapestry’s Long-Term Strategy
The transaction comes at a time when Tapestry said the Stuart Weitzman brand had challenged financial results for the company during the latest earnings report, which showed net sales decreasing 16% YoY due to weakened luxury spending in North America and China.
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The deal is expected to be finalized this summer. CEO of Tapestry Joanne Crevoiserat said the sale will allow the company to maintain focus on its largest value-creation opportunities, reinvigorating the Kate Spade brand and sustaining momentum with Coach.
As part of its growth strategy, Tapestry also set out to purchase Capri Holdings Limited, which houses global luxury brands Versace, Jimmy Choo, and Michael Kors. However, the deal was derailed last year due to FTC lawsuits that alleged the merger would hurt competition and lead to higher prices.
