It’s a Halloween Massacre For Michael Kors’ Owner Capri Holdings
Halloween came early as prices were slashed by Michael Myers Kors. And it’s not just bags selling for a fraction of their regular price. Capri Holdings — the owner of Versace, Jimmy Choo, and Michael Kors — saw its stock cut nearly in half last Friday after a US judge sided with the Federal Trade Commission (FTC) to block Tapestry’s proposed $8.5B acquisition.
- The judge agreed with the FTC that merging Coach, Kate Spade, and Michael Kors under one umbrella would hurt competition in the “accessible luxury” handbag market, potentially raising prices.
- The ruling highlighted the need to preserve head-to-head competition between the two companies, which would command a 59% market share if the merger went through.
Khan for the win: The ruling is a tough blow for Capri, who struggled to revitalize Michael Kors before the Tapestry acquisition offer in 2023. During the trial, testimony revealed that many Michael Kors bags were selling for under $100, far below the typical $450 price. But Capri’s loss is a win for the FTC, giving the agency another victory in cases fully litigated under Lina Khan — who has taken a more aggressive stance against big corporations. Khan recently completed her three-year term as FTC Chair, though she can continue indefinitely unless replaced.
