Caleres (NYSE: CAL), a leading footwear company, has announced a definitive agreement to acquire the Stuart Weitzman brand from Tapestry, Inc. (NYSE: TPR) for $105 million in cash, subject to customary adjustments. The deal, revealed on Wednesday, February 19, 2025, marks a strategic move for both companies.
Tapestry, the parent company of Coach and Kate Spade, is divesting Stuart Weitzman to focus on its core brands after an unsuccessful attempt to merge with Capri Holdings. Joanne Crevoiserat, CEO of Tapestry, stated that this transaction ensures all their brands are positioned for long-term success, allowing them to focus on Coach and reinvigorate Kate Spade. Tapestry acquired Stuart Weitzman in 2015 from Sycamore Partners for $574 million. The sale to Caleres represents a significant loss for Tapestry.
Caleres, known for its portfolio of consumer-driven footwear brands, aims to strengthen its position in the women’s fashion footwear market with this acquisition. Jay Schmidt, President and CEO of Caleres, expressed his admiration for Stuart Weitzman and the brand’s role in shaping the footwear industry. He emphasized Caleres’ commitment to preserving the brand’s legacy while driving growth through its global and direct-to-consumer reach.
Schmidt anticipates Stuart Weitzman becoming a lead brand for Caleres, with the Brand Portfolio segment generating nearly half of the company’s total revenue and over half of its operating profit. Caleres intends to leverage its footwear capabilities to pursue category and channel growth, expecting the brand to operate profitably post-integration.
The transaction is expected to close in the summer of 2025, with Caleres planning to fund the acquisition through its revolving credit agreement.
