Capri Holdings Limited (CPRI) shares plummeted by nearly 50% after a judge blocked its acquisition by Tapestry, Inc. (TPR). The judge’s decision, which came after an eight-day trial, grants the Federal Trade Commission’s request for a preliminary injunction, arguing that the merger would stifle competition in the U.S. handbag market. Both companies have announced their intention to appeal the ruling.
Tapestry, Inc. (TPR) exceeded fourth-quarter earnings expectations, reporting adjusted earnings per share of 92 cents, surpassing analyst estimates. The company also maintained its annual dividend rate, declared a quarterly cash dividend, and provided guidance for fiscal 2025.
Tapestry, Inc., the parent company of Coach, Kate Spade, and Stuart Weitzman, reported strong fourth-quarter earnings, exceeding analyst estimates for both earnings per share and revenue. The company also announced a positive outlook for the upcoming fiscal year, with expected revenue of around $6.7 billion and EPS between $4.45 and $4.50. In response to the strong results, Tapestry shares surged by 8% in premarket trading.
The Biden administration has rolled out over a dozen new initiatives and rules in a frantic attempt to boost its chances in the upcoming midterm elections. According to a new CNN poll, Trump is leading the president by six points, one of the biggest gaps yet. The survey also shows Trump inching ahead in several critical swing states.
The Biden administration’s flurry of activity includes new FTC rules that ban non-compete agreements, a re-write of Title IX, EEOC charges of racism against a company for avoiding hiring criminals, and more federal help on student loans.
Critics say the White House is panicked and that its policies are not well-thought-out. The Trump administration employed a similar strategy in its final months, ditching several policies rolled out late in President Obama’s second term. Biden returned the favor when he came to office.
Tapestry’s proposed $57 per share acquisition of Capri Holdings has encountered opposition from the Federal Trade Commission (FTC), raising concerns about potential antitrust violations. The FTC argues that the merger would result in Tapestry’s dominance in the “accessible luxury” handbag market and negatively impact employees. However, Tapestry disputes these claims, maintaining that the market is competitive and the deal would not harm consumers or workers. The case is expected to proceed to court, with a judge assigned to oversee the proceedings. The outcome of the trial is uncertain, but analysts believe there is a 60% chance that the deal will be approved. Capri’s stock price currently reflects a 29% likelihood of a legal victory, offering potential investment opportunities with an estimated return of 22% if the merger is successful.
The US Federal Trade Commission (FTC) is suing Tapestry, the parent company of Coach and Kate Spade, in an attempt to block its $8.5 billion USD acquisition of Capri, the owner of Michael Kors, Versace, and Jimmy Choo. The FTC alleges that the deal would eliminate direct competition in the luxury handbag market, resulting in higher prices and reduced innovation for consumers.
The Federal Trade Commission (FTC) has filed a lawsuit to block the proposed $8.5 billion merger between Tapestry, Inc. and Capri Holdings Limited, citing antitrust concerns. Tapestry owns brands such as Coach and Kate Spade, while Capri owns brands like Michael Kors and Versace. The FTC alleges that the deal would eliminate direct competition between the two companies in the ‘accessible luxury’ handbag market, giving Tapestry an unfair advantage. The regulators also expressed concerns about potential negative consequences for workers in the combined company, including lower wages and reduced workplace benefits.
The Federal Trade Commission has filed a lawsuit to prevent Tapestry Inc.’s acquisition of Capri Holdings Ltd., citing antitrust concerns. The complaint alleges that the merger would lead to higher prices for handbags and accessories in the affordable luxury sector, harming consumers.
The Federal Trade Commission (FTC) has expressed concerns over Tapestry’s proposed $8.5 billion acquisition of Capri, citing potential harm to consumers and employees. According to the FTC, the merger would eliminate competition between six brands: Tapestry’s Coach, Kate Spade, and Stuart Weitzman, and Capri’s Michael Kors, Jimmy Choo, and Versace. The FTC alleges that the deal would result in higher prices, fewer choices, and reduced employee benefits. Tapestry has defended the acquisition, arguing that it operates in a competitive market and that the merger would not harm consumers or employees.
The Federal Trade Commission (FTC) has filed a lawsuit to block the $8.5 billion acquisition of Capri Holdings by Coach and Kate Spade’s parent company, Tapestry. The deal would have combined six fashion brands under one company, including Tapestry’s Coach, Kate Spade, and Stuart Weitzman, and Capri’s Versace, Jimmy Choo, and Michael Kors. However, the FTC argues that the merger would harm shoppers and employees by reducing competition and raising prices.
