Caleres Acquires Stuart Weitzman: A Strategic Move for Luxury Footwear Dominance

Caleres (NYSE: CAL), a leading footwear company, has announced a definitive agreement to acquire Stuart Weitzman from Tapestry, Inc. (NYSE: TPR) for $105 million. This strategic acquisition aligns with Caleres' long-term objectives and is expected to close in the summer of 2025. The deal will strengthen Caleres' position in the women's fashion footwear market, particularly in the contemporary segment, while enabling Tapestry to focus on its core brands, Coach and Kate Spade.

Caleres' President and CEO, Jay Schmidt, expressed his admiration for Stuart Weitzman's pivotal role in shaping the footwear industry and committed to preserving the brand's legacy of craftsmanship, quality, and fit while driving it forward. The acquisition is expected to generate nearly half of Caleres' total revenue and over half of its operating profit, making Stuart Weitzman a lead brand for the company. Schmidt also highlighted the potential for category and channel growth, as well as the expectation to operate the brand profitably post-integration.

Tapestry's CEO, Joanne Crevoiserat, acknowledged Stuart Weitzman's iconic status and the brand's contributions to Tapestry's organization over the past decade. She emphasized the transaction's importance in positioning all of Tapestry's brands for long-term success and maintaining a sharp focus on its largest value creation opportunities. Crevoiserat also expressed satisfaction in finding an ideal owner for Stuart Weitzman in Caleres.

The acquisition of Stuart Weitzman presents significant synergies for Caleres, including supply chain optimization, channel expansion, and market positioning. By leveraging Caleres' established footwear manufacturing and distribution networks, the company can potentially reduce Stuart Weitzman's production costs. Additionally, the acquisition provides immediate access to Stuart Weitzman's global direct-to-consumer infrastructure, which is particularly valuable in the luxury segment. Lastly, Stuart Weitzman's strong presence in the contemporary luxury segment fills a strategic gap in Caleres' portfolio, allowing for premium pricing power.

Caleres will fund the acquisition through its revolving credit agreement and 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.

In conclusion, Caleres' acquisition of Stuart Weitzman is a strategic move that aligns with the company's long-term objectives. By leveraging operational synergies and preserving Stuart Weitzman's luxury positioning, Caleres can generate nearly half of its total revenue and over half of its operating profit from the Brand Portfolio segment. This acquisition will help Caleres achieve long-term growth and success in the luxury footwear market.