(Reuters) -Coach Parent Tapestry will sell its Stuart Weitzman brand to the shoe owner of Dr. Scholl, for 105 million dollars in cash, companies announced on Wednesday.
The divestment comes from months after Tapestry said he was focused on the growth of his organic activity and had “a large track in advance” following an 8.5 billion dollars merger agreement with The owner of Michael Kors Capri.
While the tapestry experienced a high demand for coach tabby handbags in the holiday district, Kate Spade and Stuart Weitzman had trouble due to low luxury expenses in North America and China.
Stuart Weitzman, who represented approximately 3.6% of the company’s total annual turnover, said an increase in loss from year to year to $ 21.2 million, compared to $ 6.7 million a year earlier.
“Stuart Weitzman will be a main mark for Cares, and with this combination, the brand portfolio segment will generate almost half of our total income and will continue to generate more than half of our operating profit,” said CEO of Cares, Jay Schmidt.
The brand should operate profitably after its integration into the company, added Schmidt.
Cares also houses luxury shoe brands Sam Edelman and Vince, and operates nearly 1,000 retail stores in the United States.
The agreement should be concluded in the summer of 2025, with cares to finance it through the company’s renewable credit agreement, he said.
Bofa Securities is a financial advisor to moderate, and Morgan Stanley & Co. LLC works for Testry.
(Report by Savyata Mishra in Bengaluru; edition by Sriraj Kalluvila and Shinjini Ganguli)
