Parent company of Famous Footwear, Sam Edelman to acquire Stuart Weitzman
Footwear giant Caleres has signed a definitive agreement to acquire Stuart Weitzman from Tapestry Inc.
The company, whose brands include Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer and more, is buying the luxury footwear brand for $105 million in cash. The deal will allow Tapestry to focus on its two remaining brands — Coach and Kate Space — while enhancing Caleres’s position in women’s fashion footwear.
In a release, Caleres president and CEO Jay Schmidt said that Stuart Weitzman will be a lead brand for Caleres.
“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,” said Schmidt. “The acquisition of Stuart Weitzman advances our strategic agenda to grow our brand portfolio segment with more global and direct-to-consumer reach."
With the acquisition, Caleres’ brand portfolio segment will generate nearly half of the company’s total revenue and will continue to generate over half of its operating profit, added Schmidt.
“We will leverage our demonstrated, best-in-class footwear capabilities while pursuing category and channel growth,” he said.
The deal comes after Tapestry’s proposed $8.5 billion acquisition of Capri Holdings, parent company of Jimmy Choo, Michael Kors and Versace, was blocked by government regulatory action and a Manhattan federal judge granted a preliminary injunction that prevented it from moving forward while the FTC investigates the deal in its administrative court. The deal was called off.
Tapestry acquired Stuart Weitzman in 2015 from Sycamore Partners. The deal was valued at $574 million.
“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,” said Joanne Crevoiserat, CEO, Tapestry. “At Tapestry, this means harnessing our position of strength to sustain Coach’s leadership and momentum while 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.”
Caleres will fund the acquisition, which is expected to close in summer 2025, through the company’s revolving credit agreement.
Caleres’ portfolio of global footwear brands include Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, Vioni and more. Its products are are available in the nearly 1,000 retail stores it operates, major department and specialty stores, and branded e-commerce sites as well as additional third-party retail websites.
Advisors
BofA Securities is serving as Caleres’s financial advisor and BCLP (Bryan Cave Leighton Paisner) is its legal advisor. Morgan Stanley & Co. LLC is serving as Tapestry, Inc.’s financial advisor and Latham & Watkins LLP is its legal advisor.
