After years of negotiations between the two companies, this acquisition is a big step towards the U.S. goal of building a parent company comparable to the European LVMH Mo\u00ebt Hennessy Louis Vuitton or Kering. However, the U.S. group is still far from reaching the numbers of these companies; in 2022, Kering had sales of \u20ac20.35 billion and LVMH, $79.2 billion.<\/p>\n\n\n\n
In the past, U.S. fashion companies sought to expand their portfolios individually. Tapestry (formerly known as Coach Inc.) acquired Kate Spade for $2.4 billion in 2017, while Capri (formerly Michael Kors) bought Jimmy Choo for $1.2 billion in the same year. In 2018, Capri acquired Versace for $2.12 billion. Their union under Tapestry represents the most significant move to date.<\/p>\n\n\n\n
Tapestry, which will have more than 33,000 employees in 75 countries, will be able to cut overhead by $200 million due to this acquisition. The addition of Versace and Jimmy Choo will strengthen the group’s presence in the luxury segment, while also bolstering its more affordable product offerings, such as those of Coach and Michael Kors.<\/p>\n\n\n\n