Caleres (NYSE: CAL), a market-leading portfolio of consumer-driven footwear manufacturers, right now introduced it has signed a definitive settlement to amass Stuart Weitzman from Tapestry, Inc. (NYSE: TPR), a home of iconic equipment and way of life manufacturers, for $105 million, topic to customary changes. The acquisition cements Caleres’ management place in girls’s vogue footwear, significantly within the modern phase of the market.
“I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry. As we bring this iconic brand into the Caleres portfolio, we are committed to preserving its legacy of craftsmanship, quality and fit while driving it forward,” stated Jay Schmidt, President and CEO of Caleres. “The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach. Stuart Weitzman will be a lead brand for Caleres, and with this combination the Brand Portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit. We will leverage our demonstrated, best-in-class footwear capabilities while pursuing category and channel growth. We expect to operate the brand profitably post-integration and I look forward to partnering with both the Tapestry and Stuart Weitzman teams for a seamless and successful transition.”
Caleres will purchase Stuart Weitzman from Tapestry, Inc for $105 million, enhancing its management in girls’s vogue footwear.
CEO Jay Schmidt goals to honour the model’s legacy whereas increasing globally.
Tapestry CEO Joanne Crevoiserat views the sale as a strategic step.
The deal, closing in summer time 2025, will likely be funded by Caleres’ revolving credit score settlement.
Joanne Crevoiserat, Chief Government Officer of Tapestry, Inc., added, “Stuart Weitzman is an iconic global footwear brand, whose teams have added to the passion, creativity, and craftsmanship of our organization over the last decade. Importantly, as diligent stewards of our portfolio and disciplined allocators of capital, this transaction ensures that all our brands are positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities. At Tapestry, this means harnessing our position of strength to sustain Coach’s leadership and momentum while reinvigorating Kate Spade to drive durable organic growth and shareholder value. At the same time, we are pleased that we found Stuart Weitzman a home in Caleres – an ideal owner to guide its next chapter of growth.”
The transaction is predicted to shut in the summertime of 2025, and Caleres will fund the acquisition by the corporate’s revolving credit score settlement. The corporate will present extra particulars concerning its integration plans and the monetary impression of the acquisition after the transaction closes.
Advisors
BofA Securities is serving as Caleres’s monetary advisor and BCLP (Bryan Cave Leighton Paisner) is its authorized advisor. Morgan Stanley & Co. LLC is serving as Tapestry, Inc.’s monetary advisor and Latham & Watkins LLP is its authorized advisor.
Caleres Enterprise Replace
As a result of timing of this announcement, Caleres is offering a enterprise replace for the 12 months ending February 1, 2025. Caleres expects to report consolidated internet gross sales and earnings per diluted share according to its most up-to-date steerage. Caleres plans to report earnings on March 19, 2025, earlier than the market opens.
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