Tapestry-Capri merger blocked by judge in FTC antitrust case

A judge ruled in favor of the Federal Trade Commission's (FTC) antitrust case against Tapestry (TPR) and Capri Holdings (CPRI), blocking the merger of the two luxury fashion brands. Capri shares have plummeted by over 50% in Thursday's extended-hours trading.

Julie Hyman and Josh Lipton break down this news on Market Domination Overtime. Tapestry is the parent company of brands Coach and Kate Spade, while Capri owns Michael Kors and Versace.

Former LVMH North America (MC.PA) chair Pauline Brown sat down with Yahoo Finance in September to discuss the FTC's arguments in its case against the two fashion giants.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Luke Carberry Mogan.

Video Transcript

All we got breaking news here.

Tapestry's merger with Capri holdings blocked by a judge which is a victory here for the FTC shares of pre holdings.

Look at those.

They are plunging on that news.

They are down more than 50% right now.

Tapestry parent company of Coach and Kate Spade.

Uh Well, Capri owns Michael Kors.

So these headlines just coming in, Julie, a judge has blocked the planned $8.5 billion acquisition by tap of rival Capri.

The judge freed the deal concluding it would be anti competitive.

Yeah, and this has been more than a year in the making.

This deal was announced back in August of 2023 and we have been waiting for some kind of decision on this.

As you mentioned, Tapper Street owns coach Kate Spade Stuart Weitzman.

Capri owns Versace, Jimmy Choo and Michael Kors and the complaint here where the FTC S objection has been that uh this would, you know, sort of drive up prices potentially in the handbag market in particular.

So it looks like that, that argument at least for now has won out.

So we'll see what kind of commentary we got from the companies.

Obviously shareholders, very disappointed in this ruling.