Caleres to Acquire Tapestry’s Stuart Weitzman for $105 Million
Caleres has inked a deal to acquire Stuart Weitzman from Tapestry Inc. for $105 million.
The move strengthens Caleres’ position in women’s fashion footwear, particularly in the contemporary segment of the market, while enabling Tapestry to focus on its Coach and Kate Spade brands.
WWD and FN first reported last September that Tapestry was looking to sell off Stuart Weitzman.
“I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry. 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,” Jay Schmidt, president and chief executive officer of Caleres, said in a statement Wednesday morning.
“The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach,” Schmidt added. “Stuart Weitzman will be a lead brand for Caleres, and with this combination, the segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit. We will leverage our demonstrated, best-in-class footwear capabilities while pursuing category and channel growth.”
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The CEO added that the company expects to operate the brand profitably post integration, and would work closely with Tapestry and the brand on the transition.
Joanne Crevoiserat, CEO of Tapestry, said in a statement, “Stuart Weitzman is an iconic global footwear brand, whose teams have added to the passion, creativity, and craftsmanship of our organization over the last decade. Importantly, as diligent stewards of our portfolio and disciplined allocators of capital, this transaction ensures that all our brands are positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities.”
For Tapestry, that means driving Coach’s momentum and reinvigorating Kate Spade “to drive durable organic growth and shareholder value.” “At the same time, we are pleased that we found Stuart Weitzman a home in Caleres – an ideal owner to guide its next chapter of growth,” Crevoiserat said.
Stuart Weitzman, launched in 1986, was acquired by Tapestry in 2015, when the company snapped up the brand from Sycamore Partners in a transaction valued at $574 million.
Looking ahead, Caleres and Tapestry said the transaction is expected to close in the summer of 2025. Caleres will fund the acquisition through the company’s revolving credit agreement, and it plans to provide more details regarding its integration plans and the financial impact of the acquisition after the transaction closes. The deal is subject to customary adjustments, Caleres indicated.
Caleres’ portfolio of footwear brands includes Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, Vionic, Dr. Scholl’s Shoes, among others. The company’s products are available in nearly 1,000 retail stores that it operates, as well as in hundreds of department and specialty stores, on Caleres’ 15 branded e-commerce sites, and on various third-party retail websites.
Schmidt has been building his executive team with new talent and striking deals early in the new year.
This month, Caleres revealed that it signed a licensing agreement to produce the first shoe collection for Favorite Daughter for fall 2025. Favorite Daughter was launched in 2020 by sisters Erin and Sara Foster — in partnership with Centric Brands. Also last month, Caleres disclosed that Brian Costello, formerly with Nordstrom, joined Famous Footwear as chief merchandising officer.
For its part, Tapestry reported a good fiscal second quarter. While net income slipped 3.7 percent to $310.4 million, or $1.38 a diluted share, adjusted earnings per share came in at $2, beating Wall Street forecasts by 25 cents. Revenues for the three-month period rose 5 percent to $2.2 billion, ahead of the $2.11 billion analysts projected, and were driven by progress at Coach, Tapestry’s biggest brand.
However, the top-line growth at Coach was offset somewhat by Kate Spade, which saw organic sales drop 10 percent to $416.4 million. And Stuart Weitzman also declined, with sales falling 16 percent to $69.7 million.
For the past year and a half, Tapestry sought to buy Capri Holdings for $8.5 billion, but the proposed deal was blocked by government regulatory action and a Manhattan federal judge who effectively nixed the deal by granting a preliminary injunction requested by government antitrust lawyers. The deal is now off.
Capri, meanwhile, will hold an investor’s day Wednesday. The company is said to be trying to sell its Jimmy Choo and Versace brands in order to focus on the core Michael Kors subsidiary, which has been struggling for several years.
