Tapestry pens pact to sell Stuart Weitzman brand to Caleres for $105 million in cash

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NEW YORK (AP) — Tapestry Inc. says it has penned an agreement to sell the Stuart Weitzman brand to Caleres, a portfolio of footwear brands for $105 million in cash.

Tapestry said Wednesday that selling the brand would enable the fashion company to focus on sustaining the growth of Coach, while reinvigorating sales at Kate Spade. Meanwhile Caleres said that buying Stuart Weitzman would help accelerate sales, with the luxury brand being the lead label in its portfolio. It also owns such labels as Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer and Vionic.

“I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry," said Jay Schmidt, president and CEO of Caleres, in a statement. "As we bring this iconic brand into the Caleres portfolio, we are committed to preserving its legacy of craftsmanship, quality and fit while driving it forward.”

The deal comes roughly four months after a U.S. District judge halted the merger between Tapestry and Capri Holdings Inc., whose labels include Versace, Michael Kors and Jimmy Choo brands. In her ruling, the judge said the merger would reduce competition and hurt consumers. The decision came six months after the Federal Trade Commission sued to block Tapestry's $8.5 billion acquisition of Capri, saying that the deal would eliminate direct competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena.

Tapestry and Caleres said the transaction is expected to close this summer, subject to customary closing conditions