Tapestry set to buy Michael Kors, Versace and Jimmy Choo.

Tapestry , the parent company of Coach , is set to acquire Capri Holdings Limited , the owner of Michael Kors , in a substantial $8.5 billion agreement aimed at enhancing its competitive stance against Europe's prominent luxury fashion giants.

This transaction will significantly bolster the assortment within Tapestry, headquartered in New York. It will incorporate Capri's prominent labels, namely Michael Kors, Versace, and Jimmy Choo, into the existing array of brands under the US conglomerate, which includes Coach, Kate Spade, and Stuart Weitzman.

Over the years, American fashion conglomerates have trailed behind the heavyweight luxury players of Europe, such as 酩悦·轩尼诗-路易·威登集团 and 开云 . These European giants benefit from substantial advantages in terms of scale, encompassing retail, marketing, and talent acquisition, allowing them to continuously expand their brand portfolios. Just recently, the French company Kering disclosed its acquisition of a 30% stake in Valentino, while LVMH secured the purchase of Tiffany in a colossal $16 billion deal during 2021.

In response, US fashion entities have endeavored to strengthen their positions. In 2017, then-known as Coach Inc, Tapestry acquired Kate Spade for $2.4 billion. Later that same year, Capri, then known as Michael Kors, acquired Jimmy Choo for $1.2 billion. Subsequently, Capri added Versace to its portfolio in 2018 through a $2.2 billion deal.

Despite these efforts, American fashion conglomerates continue to pale in comparison to their European counterparts. Tapestry currently holds a market capitalization of approximately $10 billion, while Capri is valued at around $4 billion. By way of contrast, Kering commands a valuation of roughly $72 billion, while the industry leader LVMH, boasting ownership of 75 brands, commands a staggering market capitalization of $456 billion.