Capri stock craters nearly 50% after judge blocks $8.5 billion Tapestry deal

Published On Oct 24, 2024, 5:17 PM

Capri Holdings, the parent company of fashion brands like Michael Kors and Jimmy Choo, experienced a significant decline in its stock price, plummeting about 50% after a US judge blocked its planned $8.5 billion merger with Tapestry, the owner of Coach. This decision was based on antitrust concerns, with the judge arguing that the merger would reduce competition in the market for accessible luxury handbags. Although Tapestry's stock rose by around 12% in response to the ruling, the market sentiment towards Capri remained negative due to the potential long-term implications of the failed merger.