Tapestry has agreed to sell its Stuart Weitzman footwear business to Caleres in a US$105 million cash transaction.

According to Tapestry CEO Joanne Crevoiserat, the deal ensures that all brands are positioned for long-term success and allows the company to maintain a sharp focus on value-creation opportunities. 

“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,” Crevoiserat added.

Tapestry reported a 5 per cent sales uplift in the second quarter, with Coach sales growing 11 per cent while Kade Spade and Stuart Weitzman fell 10 and 15 per cent respectively.

Caleres said the acquisition cements its leadership position in women’s fashion footwear, particularly in the contemporary segment of the market.

“The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach,” said Caleres president and CEO Jay Schmidt. 

“Stuart Weitzman will be a lead brand for Caleres, and with this combination the Brand Portfolio segment will generate nearly half of our total revenue and will continue to generate over half of our operating profit.”

The transaction is expected to close in the summer of 2025, subject to customary closing conditions.

Caleres will fund the acquisition through the company’s revolving credit agreement. The company will provide more details regarding its integration plans and the financial impact after the transaction closes.