Federal judge blocks luxury brand merger between Tapestry and Capri

Published On Oct 25, 2024, 4:14 PM

A federal judge blocked the proposed $8.5 billion merger between Tapestry and Capri, which planned to unite six major luxury brands under one entity. The judge ruled that the merger would undermine competition in the luxury handbag market. Tapestry's brands include Coach, Kate Spade, and Stuart Weitzman, while Capri's brands include Versace, Jimmy Choo, and Michael Kors. The ruling prompted a significant drop in Capri's stock price by over 48%, while Tapestry's stock rose by more than 13%. The companies plan to appeal the decision.

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Stock Forecasts

CPRIView CPRI chart on TradingView

Negative

Capri's stock has experienced a sharp decline and is likely to continue facing pressure due to the merger block and potential market uncertainties. The company’s appeal might not affect short-term performance significantly.

TPRView TPR chart on TradingView

Positive

Tapestry's stock is likely to benefit from the news as it avoids the risks associated with the failed merger. Its stock price increase indicates investor confidence, and the company may capitalize on this positive momentum in the luxury market.

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