Coach Owner to Buy Parent of Versace in Luxury Mega Merger

[Nimsay]

The entire brand portfolio under the Tapestry-Capri merger will be:
• Coach
• Jimmy Choo
• Kate Spade
• Michael Kors
• Stuart Weitzman
• Versace

Jimmy Choo is still desirable and is scorching hot right now - ever since thier MK rebrand. I know just from shopping and having eyes many of their spring summer bags sold out. JC has always been a serious name that has always been placed next to Manolo Blahnik and Louboutin.

Coach seems to be having a resurgence with their good press on YT. about how their quality is very high and bags are reasonably priced. Im not shopping at Coach because I dont do any logo and I looked and most of their silhouettes are ugly. If they produced chicer stuff theyd sell more.

Kate Spade is the one with no identity. Its basically Alternate Coach. I have only really seen their jewelry recently and it gave Luxury Trinket energy. Like kitchy, cartoonish but expensive (for costume) jewelry.

Michael Kors Collection atp is a salwart designer label With exceptional quality. I like MK collection because that stuff has the no name look that I like. I also think Americans really connect with his sort of Nouveau American Gothic look. MK should leverage Versace Atelier and add a Haute Couture line.


Stuart Weitzman is barely anything. Luxury Steve Madden. I havent been to a SW store since 2006.

Versace has been a mess for a while. Donatella hasnt made a hit anything since 2005. The recent refocus onto Gianni’s codes seems long coming. The handbag and show redo has been pretty good. Versace barely sells any shoes or accessories. bathrobes and perfume probably pays the bills. Versace is by far the weakest Tier 1 Designer brand in the world.

 

[GoldenPetals]

MK is the best thing that ever happened to Versace since Gianni. The new Versace actually looks like Versace and not whatever crap Donatella comes up with. I dont like Donatella because she tried to compete and replace Giannis codes. Yet Versace not produced a hit since Gianni died. Versace has been running on Gianni hype for 30 years.

FINANCIALLY, maybe MK is better for Versace. Also, saying that Donatella has never had a hit is just objectively false. She's had both creative and commercial hits. Off the top of my head, F/W 06 and S/S11 come to mind. I do think she's incapable of coming close to his branding genius, not even close. And while it's nice to see the brand still 'in the family', her departure is LONG overdue. At the same time, I fear that whoever takes over will just churn out empty Rousteing-adjacent drivel.

 

[tatouejeremie]

The entire brand portfolio under the Tapestry-Capri merger will be:
• Coach
• Jimmy Choo
• Kate Spade
• Michael Kors
• Stuart Weitzman
• Versace

Jimmy Choo is still desirable and is scorching hot right now - ever since thier MK rebrand. I know just from shopping and having eyes many of their spring summer bags sold out. JC has always been a serious name that has always been placed next to Manolo Blahnik and Louboutin.

Coach seems to be having a resurgence with their good press on YT. about how their quality is very high and bags are reasonably priced. Im not shopping at Coach because I dont do any logo and I looked and most of their silhouettes are ugly. If they produced chicer stuff theyd sell more.

Kate Spade is the one with no identity. Its basically Alternate Coach. I have only really seen their jewelry recently and it gave Luxury Trinket energy. Like kitchy, cartoonish but expensive (for costume) jewelry.

Michael Kors Collection atp is a salwart designer label With exceptional quality. I like MK collection because that stuff has the no name look that I like. I also think Americans really connect with his sort of Nouveau American Gothic look. MK should leverage Versace Atelier and add a Haute Couture line.


Stuart Weitzman is barely anything. Luxury Steve Madden. I havent been to a SW store since 2006.

Versace has been a mess for a while. Donatella hasnt made a hit anything since 2005. The recent refocus onto Gianni’s codes seems long coming. The handbag and show redo has been pretty good. Versace barely sells any shoes or accessories. bathrobes and perfume probably pays the bills. Versace is by far the weakest Tier 1 Designer brand in the world.

what are you on? a michael kors couture line? in what world does that make any sense

 

[GoldenPetals]

I can't think of anything more terrifying than Michael Kors attempting a couture line.

 

[Lola701]

FINANCIALLY, maybe MK is better for Versace. Also, saying that Donatella has never had a hit is just objectively false. She's had both creative and commercial hits. Off the top of my head, F/W 06 and S/S11 come to mind. I do think she's incapable of coming close to his branding genius, not even close. And while it's nice to see the brand still 'in the family', her departure is LONG overdue. At the same time, I fear that whoever takes over will just churn out empty Rousteing-adjacent drivel.

She definitely had hits… The whole palette cleanser era she had between the late 00´s and early 2010’s and even recently, spring 2016 was good, the Gianni tribute collection too and the FW2018 collection was solid too.

I think that she has succeeded in opening the spectrum of what Versace can be, much like Gianni did, but with her own personality. She has her taste, her aesthetic and somehow Versace still feels modern.

‘I just don’t think she has the creative drive. Versace days as a leader in fashion are gone but the identity is so strong that it’s disappointing to see her chasing trends. We see it with the success of YSL, when the vision is confident, consistent and perfectly executed, you don’t have to chase trends. You might even start some.

 

[kasper!]

Stuart Weitzman is strong at mid-market and they are good at boot catagory. 5050 is a icon model.....

They have Jimmy Choo for high-end market and SW for mid-market now. I hope they could bring some old Choo styles back. After the Capri merge they have cut at least half models, for example they don't offer round toe pumps anymore.

 

[tigerrouge]

Coach seems to be having a resurgence with their good press on YT. about how their quality is very high and bags are reasonably priced. Im not shopping at Coach because I dont do any logo and I looked and most of their silhouettes are ugly. If they produced chicer stuff theyd sell more.

I tend to think of it like an iceberg - the people talking about Coach on the internet are only a fraction of those who are the actual customers of Coach, and their affinity with the brand is based on values other than those prioritised on social media.

The people who buy Coach want dependable quality at a reasonable price. Brands who offer that are currently like oases in a sea full of rubbish. Any move towards becoming yet another overpriced hype brand, and they could pay dearly for it in the long run, even if they get a bump in sales for a few years.

 

[LadyJunon]

I just don’t think she has the creative drive. Versace days as a leader in fashion are gone but the identity is so strong that it’s disappointing to see her chasing trends. We see it with the success of YSL, when the vision is confident, consistent and perfectly executed, you don’t have to chase trends. You might even start some.

To be honest, the YSL strategy is absolutely genius. It allows for consistency and (relative) authenticity and it probably does wonders for the mindset of the design team to not have to worry about creating a revolution each season. So many designers and houses would benefit from this strategy.

I tend to think of it like an iceberg - the people talking about Coach on the internet are only a fraction of those who are the actual customers of Coach, and their affinity with the brand is based on values other than those prioritised on social media.

The people who buy Coach want dependable quality at a reasonable price. Brands who offer that are currently like oases in a sea full of rubbish. Any move towards becoming yet another overpriced hype brand, and they could pay dearly for it in the long run, even if they get a bump in sales for a few years.

I think that the global issue that mid-market brands like Coach have is that they blend into each other way too easily. When a brand's main message is quality, it can often means that hasn't been much work put into an actual vision for the brand itself.

In Coach's case, the core products look good, but the brand's visuals are all over the place. As a result, it feels like those over-licensed luxury brands in the 80s, before Arnault and Pinault bought them and whipped them into shape. Before they try to focus on becoming a hype brand, they need to revamp their ready-to-wear offerings, streamline the bag offering and give themselves an actual identity beyond quality to support that hype.

 

[ImLearningPlsBeNice]

Big big yikes

 

[jeanclaude]

(fbcdn.net)

 

[Bernie Flood]

Ugh. To have Galliano and Lacroix back to their own brands...

The owner of Margiela should just buy back the Galliano brand from the Arnault.

It needs to be resurrected. Though the Arnault might be punishing and still bitter towards John Galliano- but whyvm?

 

[Lola701]

The owner of Margiela should just buy back the Galliano brand from the Arnault.

It needs to be resurrected. Though the Arnault might be punishing and still bitter towards John Galliano- but whyvm?

What’s the value of a Galliano brand today for someone to possibly own a brand that never made money and that survived only because of licensing agreements?

‘Galliano would make sense if John Galliano owns that and do his kind of Herve Leger’s « Herve Leroux » operation.

The question is if Galliano would be ready to re-start everything again and also if he is ready to handle the pressure that will come with that name being on the forefront again.

Because today he can hide behind Margiela, he is very protected and the eco-system around him has allowed him to spend 8 peaceful years at Margiela.

And Sydney Toledano has said that he has made peace with Galliano as John reached out to him…

I think that it needs to be an interest for Galliano for Arnault to sell it…If ever John wants to acquire the rights to his name for example rather than resurrecting a brand.

 

[callmejaeden]

The merger has been blocked.
Capri’s Outlook Dims After Tapestry Deal Gets Blocked

Capri’s Outlook Dims After Tapestry Deal Gets Blocked​

Capri, already struggling, could look to sell Versace and even go private to right itself, according to analysts.​

This isn’t the way either Tapestry Inc. or Capri Holdings expected their $8.5 billion engagement to end.
But now that the breakup has come — after a preliminary and all-but-final injunction from a Manhattan federal judge — experts said Tapestry is able to move on, keep building on its successful Coach business, and maybe even buy something else.
Capri is another story, with analysts speculating the firm might have to ultimately sell off brands and go private to rebuild. It’s been an expensive and ultimately disappointing fling. Tapestry paid $109 million in deal-related expenses and $116.7 million in interest expense on debt accumulated to close the acquisition last fiscal year. Capri recorded at least $25 million in deal-related costs. But the real price Capri has paid was in the stock market.
The company’s shares had been buoyed by the prospect of the $57 a share buyout by Tapestry, but it collapsed on Friday after the Federal Trade Commission scored a major victory in its antitrust case against the deal, and closed down 48.9 percent to $21.25 Friday, leaving the parent of Michael Kors, Versace and Jimmy Choo with a market capitalization of just $2.5 billion.
The broken deal is partially to blame, but the rest can likely be pinned on the performance of the business since the buyout was signed in August 2023. Capri’s revenues fell 13.2 percent to $1.07 billion in the first quarter, with Michael Kors down 14.2 percent to $675 million, and overall operating losses of $8 million. Companies usually go to pains to emphasize their strength, but eight days of court testimony repeatedly illustrated just how much the Michael Kors brand was struggling.
Cedric Wilmotte, chief executive officer of Michael Kors, testified that the brand’s turnaround efforts that would elevate design, unify the brand voice and right-size distribution were off track. “I believe Tapestry is better equipped to take us through the transition,” Wilmotte said.
And John Idol, Capri’s chairman and CEO, said that while one-in-seven women would be carrying a Michael Kors bag when he left his Manhattan office during the brand’s 2016 peak, the number was maybe “one in 200” today, “if we’re lucky.” “We’ve worked very hard to get the brand heat back into Michael Kors,” Idol said, acknowledging success has been elusive. It seems much more needs to be done.
Jessica Ramírez, senior research analyst at Jane Hali & Associates, said the Michael Kors brand hasn’t seen the “true evolution” needed.
“It’s outdated in terms of retail strategy, in terms of product, in terms of go-to market,” Ramírez said. “For a long time, they got very comfortable with what they had in terms of product, and they never really evolved that product.”
Now Michael Kors is going to have to feel its way forward on its own, without the resources of Tapestry, including the playbook it used to turn around Coach. “I’m assuming that Kors is only getting battered more and more,” Ramírez said. “It is a blessing in disguise for Tapestry not to have to deal with such a huge turnaround. But Capri does also have Versace, and it also has Jimmy Choo. So I imagine it could be dismantled. Michael Kors is such a big project right now that if someone isn’t up to taking it, I think going private might be its best choice.”
Oliver Chen, an analyst at TD Securities, saw a similar picture. “There could be interest for Versace for the traditional European luxury conglomerates, such as Kering, given the company’s presence among Italian luxury, particularly following the company’s stake in Valentino,” Chen wrote in a research note. “Jimmy Choo and Michael Kors could be taken private by various private equity firms.” He added: “There is uncertainty around the Michael Kors brand leadership and execution, and we believe the stores and brand need additional investment for growth. In other words, things may get worse before they get better.”
Tapestry, though, seems on firmer footing since the deal ran into a roadblock. Shareholders pushed the company’s stock up 13.5 percent to $50.49, for a market cap of $11.8 billion. To fund the deal, Tapestry sold over $6 billion in bonds, which will now expire as the contract runs out on Feb. 10. “The company may wait until after the results of the election to have greater clarity on the future ambitions of the FTC and [its commissioner Lina] Khan before assessing other smaller acquisitions,” Chen said. “If Tapestry pursued an acquisition, we believe it may have to be in the general accessories or apparel category and outside of handbags. For example: outerwear, jewelry, or lifestyle, such as beauty and wellness.”
While Tapestry and Capri figure out their futures separately, the rest of the fashion world is wondering over the future of deal making and just what the rules are today. One thing is for certain, the FTC is a player in the space now and fashion is very much fair game.
As Judge Jennifer Rochon wrote in her decision: “Downplaying the importance of handbags as nonessential discretionary items that consumers can simply choose not to buy if the price is too high ignores that handbags are important to many women, not only to express themselves through fashion but to aid in their daily lives — from supporting their career aspirations by transporting their work materials home or inspiring confidence in professional settings, to holding important personal items such as medications or personal hygiene products, to carrying a young child’s snacks or toys.”

 

[fashionlov]

I firmly believe that this merger could have been wrong. As for Versace, I think it is necessary to review its strategies, lately the brand is a real financial and creative disaster.