Fashion company Tapestry Inc. is reportedly on the verge of finalizing a deal to acquire Capri Holdings Ltd., the renowned parent company behind iconic brands such as Michael Kors, Jimmy Choo, and Versace. The Wall Street Journal has reported that this transaction may be officially announced as early as Thursday.
While the exact value of the deal is yet to be confirmed, insiders suggest it could amount to several billions of dollars. Capri Holdings currently boasts a market value of approximately $4.1 billion, whereas Tapestry, the proud owners of Coach and Kate Spade brands, hold a market cap of around $9.6 billion.
If successful, this particular acquisition would mark one of the most significant milestones in the fashion industry in recent years. The magnitude of this deal makes it clear that both companies are determined to make notable strides in their respective markets.
In its fiscal fourth quarter, Capri endured a challenging period, reporting a loss as revenue declined by over 10%. Consequently, the company's stock has taken a considerable hit, plummeting by almost 40% since the beginning of this fiscal year.
On the other hand, Tapestry reported impressive fiscal third-quarter earnings in May, surpassing expectations and subsequently raising its full-year guidance. These positive results have had a positive influence on the company's shares, which have recorded an 8% increase since the start of this year.
Overall, this highly-anticipated acquisition between Tapestry Inc. and Capri Holdings Ltd. is expected to significantly reshape the fashion landscape, offering new opportunities and possibilities for both companies as they strive for continued growth and success.
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