Capri stock craters 45% after judge blocks $8.5 billion Tapestry deal

Published On Oct 25, 2024, 8:07 AM

Capri Holdings, which owns Michael Kors and Jimmy Choo, experienced a significant drop in share price, falling nearly 45% following a US judge's ruling to block its planned $8.5 billion merger with Tapestry, the parent company of Coach. The judge determined that the merger would substantially reduce competition in the market for accessible-luxury handbags. In contrast, Tapestry's shares rose by about 15% after the news, and the company announced plans to appeal the decision. Industry experts suggest that the ruling supports a more competitive market and could be a setback in efforts to consolidate in the fashion sector.