Tapestry, Inc. Responds to the FTC’s Lawsuit
April 22 2024 - 4:59PM
Business Wire
Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and
lifestyle brands consisting of Coach, Kate Spade, and Stuart
Weitzman, today issued the following statement in response to the
Federal Trade Commission’s (FTC) attempt to block its proposed
acquisition of Capri Holdings Limited (NYSE: CPRI), a global luxury
fashion group consisting of Versace, Jimmy Choo, and Michael
Kors:
“There is no question that this is a pro-competitive,
pro-consumer deal and that the FTC fundamentally misunderstands
both the marketplace and the way in which consumers shop. Tapestry
and Capri operate in an intensely competitive and highly fragmented
industry alongside hundreds of rival brands, including both
established players and new entrants.
We also compete for consumers who are cross-shopping a wide
range of channels and brands along a vast pricing spectrum when
considering what to purchase. The reality is that consumers have a
host of choices when shopping for luxury handbags and accessories,
footwear, and apparel, and they are exercising them.
The bottom line is that Tapestry and Capri face competitive
pressures from both lower- and higher-priced products. In bringing
this case, the FTC has chosen to ignore the reality of today’s
dynamic and expanding $200 billion global luxury industry.
This transaction will unite six brands that offer products
across a wide range of categories. With Capri, Tapestry will gain
access to a broader set of global luxury consumers and geographies
and will drive sustainable, healthy growth for Capri’s iconic
brands, building desire and engagement with consumers globally.
Tapestry has a strong record of not only innovating for consumers
but also providing industry-leading wages and benefits for our
employees. The combined company will continue to set the bar for
both consumer and employee experiences.
We have full confidence in the merits and pro-competitive nature
of this transaction. It will bring significant benefits to the
combined company’s customers, employees, partners, and shareholders
in the U.S. and around the world. We have strong legal arguments in
defense of this transaction and look forward to presenting them in
court and working expeditiously to close the transaction in
calendar year 2024.”
The FTC is the last regulator yet to approve the
transaction.
About Tapestry, Inc.
Our global house of brands unites the magic of Coach, kate spade
new york and Stuart Weitzman. Each of our brands are unique and
independent, while sharing a commitment to innovation and
authenticity defined by distinctive products and differentiated
customer experiences across channels and geographies. We use our
collective strengths to move our customers and empower our
communities, to make the fashion industry more sustainable, and to
build a company that’s equitable, inclusive, and diverse.
Individually, our brands are iconic. Together, we can stretch
what’s possible. To learn more about Tapestry, please visit
www.tapestry.com. For important news and information regarding
Tapestry, visit the Investor Relations section of our website at
www.tapestry.com/investors. In addition, investors should continue
to review our news releases and filings with the SEC. We use each
of these channels of distribution as primary channels for
publishing key information to our investors, some of which may
contain material and previously non-public information. Tapestry’s
common stock is traded on the New York Stock Exchange under the
symbol TPR.
This communication relates to a proposed business combination
transaction between Tapestry, Inc. and Capri Holdings Limited. This
communication includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements relate to future events and anticipated results of
operations, business strategies, the anticipated benefits of the
proposed transaction, the anticipated impact of the proposed
transaction on the combined company’s business and future financial
and operating results, the expected amount and timing of synergies
from the proposed transaction, the anticipated closing date for the
proposed transaction and other aspects of our operations or
operating results. These forward-looking statements generally can
be identified by phrases such as “will,” “expects,” “anticipates,”
“foresees,” “forecasts,” “estimates” or other words or phrases of
similar import. It is uncertain whether any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do, what impact they will have on the
results of operations and financial condition of the combined
companies or the price of Tapestry, Inc. or Capri Holdings Limited
stock. These forward-looking statements involve certain risks and
uncertainties, many of which are beyond the parties’ control, that
could cause actual results to differ materially from those
indicated in such forward-looking statements, including but not
limited to: the effect of the announcement of the merger on the
ability of Tapestry, Inc. or Capri Holdings Limited to retain and
hire key personnel and maintain relationships with customers,
suppliers and others with whom Tapestry, Inc. or Capri Holdings
Limited do business, or on Tapestry, Inc.’s or Capri Holdings
Limited’s operating results and business generally; risks that the
merger disrupts current plans and operations and the potential
difficulties in employee retention as a result of the merger; the
outcome of any legal proceedings related to the merger; the ability
of the parties to consummate the proposed transaction on a timely
basis or at all; the satisfaction of the conditions precedent to
consummation of the proposed transaction, including the ability to
secure regulatory approvals on the terms expected, at all or in a
timely manner; the ability of Tapestry, Inc. to successfully
integrate Capri Holdings Limited’s operations; the ability of
Tapestry, Inc. to implement its plans, forecasts and other
expectations with respect to Tapestry, Inc.’s business after the
completion of the transaction and realize expected synergies; and
business disruption following the merger. For additional
information about other factors that could cause actual results to
differ materially from those described in the forward-looking
statements, please refer to Tapestry, Inc.’s and Capri Holdings
Limited’s respective periodic reports and other filings with the
SEC, including the risk factors identified in Tapestry, Inc.’s and
Capri Holdings Limited’s most recent Quarterly Reports on Form 10-Q
and Annual Reports on Form 10-K. The forward-looking statements
included in this communication are made only as of the date hereof.
Neither Tapestry, Inc. nor Capri Holdings Limited undertakes any
obligation to update any forward-looking statements to reflect
subsequent events or circumstances, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240422792070/en/
Tapestry, Inc. Media: Andrea Shaw Resnick Chief Communications
Officer 212/629-2618 aresnick@tapestry.com Analysts and Investors:
Christina Colone Global Head of Investor Relations 212/946-7252
ccolone@tapestry.com Kelsey Mueller 212/946-8183 Investor Relations
kmueller@tapestry.com
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