That’s all about LVMH in the US.
In a move that shocked many in the fashion industry, Judge Jennifer Rochon of the Southern District of New York on Thursday ruled against the $8.5 billion merger of Coach parent company Tapestry and Michael Kors owner Capri Holdings. I stopped it. The preliminary injunction, issued after seven days of testimony last month, was filed by the Federal Trade Commission to block a coalition of three major companies: Coach, its sister brand Kate Spade, and Capri’s Michael Kors. won the lawsuit. as an “accessible luxury” market.
“The court finds that the merging parties are close competitors and that the merger would result in a loss of direct competition,” Rochon wrote Thursday in a 169-page order and opinion.
Tapestry says it will appeal the decision, but the ruling significantly reduces the chances of the deal being completed. “Delay may be death,” said Susan Scafidi, founder of the Fashion Law Institute at Fordham Law School.
This means America’s answer to luxury conglomerates like LVMH and Kering will have to wait another day. And without Tapestry, Isle of Capri, which also owns Jimmy Choo and Versace, will have a hard time fixing its mounting problems, including declining sales. By Friday morning, the company’s stock had nearly halved, while Tapestry shares had soared 14%.
Insiders say the ruling bodes ill for future mergers and acquisitions in fashion and other industries, and signals increased risks and costs for traders.
Neil Saunders, managing director at GlobalData Retail, said: “Some companies will be forced to postpone their operations and certain deals that would have been healthy for the market may not take place.” said. “That’s a very negative thing.”
The ruling comes after the FTC said that if Tapestry and Capri teamed up, it could raise prices, lower worker wages and threaten the livelihoods of other brands that also offer handbags in the $100 to $1,000 range. supported the main argument.
But retail experts said this conclusion amounted to a misunderstanding of how consumers actually shop. Coach and Michael Kors refer to each other as major competitors, a fact Ms. Rochon cited numerous times in her opinion, but in the handbag field, Chloé and Loewe There are plenty of choices from entry-level designer pieces (albeit limited selection) to under $1,000. to emerging brands like Staud and DeMellier. The second-hand market opens up a sea of new options. During the trial last month, Tapestry’s attorney Lawrence Butterman presented the judge with a Chanel bag the company had procured from an undisclosed vendor for $900.
“The court really seems to think that buying one brand is very similar to buying another brand. It’s like buying one hammer over another,” Scafidi said. he said. “Trends change, a brand’s fortunes can rise or fall overnight, and there is no room for understanding that fashion is unpredictable like a commodity product.”
For now, Tapestry will fight to overturn the block as the FTC continues its own investigation into the merger.
“Today’s decision to grant the FTC’s request for a preliminary injunction is disappointing and we believe it is wrong on the law and the facts,” Tapestry said in a statement Thursday. “We intend to appeal this decision in accordance with our obligations under the merger agreement.”
But timing is not on your side. As stated in the regulations, if no agreement is reached by February 10, either party can leave without penalty.
News summary
fashion, business, economy
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Kering, which is struggling with a downturn in luxury goods, has warned about profits. The French group’s sales fell 16% in the third quarter as the overall market downturn hit hard. At flagship brand Gucci, where sales have fallen 25%, executives are considering closing stores while betting on a revamped handbag program to revitalize demand.
Hermès continues to outperform its rivals, with sales increasing by 11.3%. The French luxury brand posted revenue of 3.7 billion euros ($3.99 billion) in the three months to September. The slowest growth was in the Asia-Pacific region excluding Japan, where sales rose 1%.
Zegna Group’s third quarter sales fell 7%. The Italian men’s wear group was hit hard by a 22% revenue decline in Greater China. Zegna brand sales increased slightly, while Thom Browne and Tom Ford recorded double-digit declines.
Former Abercrombie CEO arrested during sex trafficking investigation. Jeffries was arrested along with his British partner Matthew Smith and a third man, Jim Jacobson, and authorities say the men sexually exploited and abused young people at the party. We are investigating the suspicion. Jeffries and his partners denied all charges in court filings for the case.
Amazon offers super low price plans on Temu’s rival store. Amazon has reportedly introduced strict price limits in its new low-priced stores, capping items such as jewelry at $8 to compete with discount rivals such as Tem and Shein. Amazon plans to ship orders directly to customers in the United States from its facilities in China’s Guangdong province.
Mike Ashley’s Frasers have withdrawn their bid for handbag maker Mulberry. Mr Frasers said Mulberry had not properly responded to its offer to acquire the remaining stake, in which it already held a 37 per cent stake. Ashley is still aiming for a board position at a British handbag manufacturer.
Mulberry will cut nearly a quarter of its corporate roles. The British handbag maker will lay off around 85 people globally as it aims to chart a path back to profitability after fending off a takeover bid from billionaire Mike Ashley’s Frasers Group. The layoffs are focused on the company’s corporate teams and do not affect its factories, retail stores or warehouses.
Gatemore is looking to buy Swiss watches. An activist investment firm has acquired a stake in Watches of Switzerland Group, prompting the luxury watch retailer to undertake an aggressive share buyback of between £25m and £50m. The company also encourages listing in the United States.
Europe’s textile recycling sector has warned of an “unprecedented crisis”. Geopolitical turmoil and an oversupply of low-cost ultra-fast fashion are driving unsustainable market dynamics, two major lobby groups say, even as regulators move to tackle clothing waste. It is said that it is producing.
Moncler holds a large-scale “Genius” event in Shanghai. The Italian skiwear retailer showcased its latest celebrity and designer collaborations in a series of pavilions in Shanghai. “The City of Genius” event attracted more than 8,000 guests, including A$AP Rocky, Edward Enninful, Willow Smith and Rick Owens.
Gucci chooses Florence for its next cruise show. Kering’s flagship store in the Italian city where Gucci was founded is set to present its Cruise 2026 collection, in an effort to reconnect the brand with its traditional story and enhance its image. The show will take place on May 15, 2025 at a location yet to be revealed.
Chanel to sponsor Oxford-Cambridge Boat Race The rowing competition between Oxford and Cambridge Universities is Britain’s oldest major sporting event. This is Chanel’s first foray into sports sponsorship, with the French luxury brand becoming the event’s title sponsor and official timekeeper as part of a long-term partnership.
Lacoste sponsors the Rolex Paris Masters Tennis Tournament. This “premium” partnership will last until 2030. Founded in 1929 by French tennis champion René Lacoste, this comes as the brand continues its push into the luxury market and reaffirming its sporting heritage under creative director Pelagia Kolotouros. did.
beauty business
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L’Oréal’s third-quarter sales were lower than expected due to lower purchases in China. The company said sales in the three months to the end of September were 10.28 billion euros ($11.11 billion), an increase of 3.4% in real terms at constant exchange rates.
Unilever’s sales rose 4.5%, narrowly beating expectations. The consumer goods giant posted its biggest sales increase in three-and-a-half years as it won back more shoppers with product innovation and modest price increases. The company maintains its full-year outlook for underlying sales growth of 3-5%.
Activist investor Starboard is targeting Neutrogena owner Kenview. The hedge fund acquired a stake in the struggling consumer products company, whose stock price has fallen more than 18% since it went public last year. Starboard may want the company to reposition its brands and rethink its pricing to improve performance.
Beiersdorf’s sales increased by 6.5%. The German beauty conglomerate posted sales growth that exceeded analysts’ expectations, driven by an economic recovery in North America and skin care, but continued pressure in China weighed on overall growth. Organic sales for the nine-month period rose 6.5% to 7.55 billion euros ($8.15 billion) from 7.26 billion euros in the same period last year.
Rianta Capital invests in biotech beauty brands. Reome, a UK-based biotech skincare brand founded in 2023, announced that it has raised over £1.1 million ($1.4 million) in its first funding round. The funding will enable the brand to expand its product offerings, wholesale distribution and direct-to-consumer business.
Astier de Villatte sells majority stake to Vesper. Founders Yvan Pericoli and Benoît Astier de Villatte will retain a “significant stake” following the sale and will continue to lead the brand creatively.
Interparfum sales increased 15%, supported by fragrance demand. The European fragrance licensee’s third-quarter results beat analysts’ expectations, with sales of $425 million. Europe performed best, with sales up 21% to $282 million, while growth in the United States slowed to $146 million, up 9%.
Beauty on-demand provider Ruuy raises $2.6 million. The investment was led by Praetura Equity Finance, a Manchester-based fund specializing in UK companies. The funds raised will be used to increase its presence in France and Switzerland, as well as expand its reach across the UK.
Venrex and British Beauty Council launch beauty venture fund. The fund, Venrex BBCo I, invests in a variety of consumer and B2B beauty businesses. Focusing on early-stage companies, the average check size ranges from $130,000 to $1.3 million.
people
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Marie Leblanc is appointed CEO of Courrèges. Former Victoria Beckham CEO will succeed Adrian da Maia, who led the brand’s restructuring alongside designer Nicola Di Felice. Mr. Leblanc will be tasked with starting a new growth cycle under the Pinault family’s holding company, Artemis.
Mike Ashley wants to make him the new CEO of Boohoo. Boohoo CEO John Little resigned last week after announcing a strategic review that could lead to a split. Mr Ashley owns more than a quarter of Boohoo, as well as major stakes in retailers including Hugo Boss and Mulberry.
Dior has appointed Bollywood star Sonam Kapoor as its new ambassador. Mr. Kapoor has previously served as a brand ambassador for L’Oréal and watch brand IWC Schaffhausen, and has also appeared in a commercial for Pepsi. Dior has sought to emphasize its ties to India in recent years.
Edited by Yola Mzizi.
