Is Capri stock a buy after its share price plunged? In a stunning turn of events, a judge ruled in favor of the U.S. government and blocked the proposed merger between handbag and fashion rivals Capri Holdings (CPRI -4.25%) and Tapestry (TPR -2.85%). The Federal Trade Commission (FTC) sued to block the merger in April after Tapestry agreed to buy Capri last year, arguing that the combination would hurt consumers and leave less affordable handbag options. The FTC lawsuit was widely viewed as a long shot, as ...

Tapestry's acquisition of Capri has been blocked. In today's video, I will discuss the Tapestry and Capri Holdings (CPRI -48.89%) merger that is currently being blocked. Check out the short video to learn more, consider subscribing, and click the special offer link below. *Stock prices used were from the trading day of Oct. 25, 2024. The video was published on Oct. 26, 2024. ...

Capri, the parent company of fashion brands Michael Kors and Jimmy Choo, saw its stock tank by more than 50% in pre-market trading on Friday after a federal judge blocked its pending $8.5 billion merger with Coach owner Tapestry.US District Judge Jennifer Rochon struck down the merger that would have seen the two American luxury giants combine to bring Coach, Kate Spade, Versace, Jimmy Choo and Michael Kors under one roof. 4 Michael Kors parent company Capri was blocked from going ahead with an $8.5 billi ...

25 years+ in the financial/investment industry. Former Senior Managing Editor here at Seeking Alpha; the tail end of an ~11 year stint working for SA. Prior to this, I worked as a Treasury Manager for a large commodities firm, where I managed financial liquidity, currency risk hedge portfolios, and investment arbitrage trades. I've also worked in financial performance analytics, trading, and banking. I have a healthy interest in behavioral finance and love a good investment "story" at least as much as a fin ...

U.S. stock futures were higher this morning, with the Nasdaq futures gaining around 0.3% on Friday.Shares of Capri Holdings Limited CPRI fell sharply in today's pre-market trading following reports that a judge has blocked the company's pending merger with Tapestry.Following an eight-day trial in which the U.S. Federal Trade Commission argued that a merger between Capri and Tapestry would remove competition from the U.S. handbag space, a U.S. judge has moved to block the pending merger, according to Reuters ...

KEY TAKEAWAYS Capri Holdings shares are plummeting nearly 50% in premarket trading Friday after a federal judge blocked Coach owner Tapestry's $8.5 billion acquisition of the Versace and Michael Kors parent. Shares of Tapestry, which also owns the Kate Spade and Stuart Weitzman brands, are surging 15%. Southern District of New York judge Jennifer Rochon granted the FTC's motion for a preliminary injunction to block the proposed merger on the grounds that a combination would hurt competition and lead to high ...

Investors looking for stocks in the Retail - Apparel and Shoes sector might want to consider either Gap (GAP) or Capri Holdings (CPRI) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revi ...

Core Viewpoint - The antitrust trial regarding Tapestry's $8.5 billion acquisition of Capri, which includes Michael Kors, highlights the challenges faced by legacy fashion brands in maintaining relevance in a rapidly changing market influenced by social media and consumer preferences [2][3]. Group 1: Market Dynamics - The FTC argues that the merger would create a dominant player in the handbag market, potentially leading to higher prices and lower product quality for consumers [4]. - Tapestry and Capri's attorneys counter that competition has increased, with consumers now considering both luxury and fast-fashion options, as well as shopping through online and secondhand platforms [5]. Group 2: Company Performance - Capri's stock has declined approximately 24% this year, underperforming compared to the S&P 500's 18% gain and Tapestry's 17% rise [6]. - Michael Kors' revenue fell by 14.2% on a reported basis and 13.3% on a constant currency basis in the most recent fiscal quarter compared to the previous year [6]. Group 3: Brand Relevance - Michael Kors acknowledged that his brand has experienced a decline in popularity and requires a refresh, indicating a state of "brand fatigue" [3][4]. - The designer emphasized the importance of staying connected to consumer trends and learning from emerging brands, citing an example of a newcomer that gained attention through celebrity endorsement [7]. Group 4: Retail Impact - Former Macy's CEO Jeff Gennette noted that reliance on Michael Kors' brand negatively impacted department store sales, contributing to a downward trend for Macy's [8].

In this article CPRI TPR Pedestrians walk past a Coach store and a Michael Kors store. Scott Olson | Getty Images Just a few miles from the birthplace of Coach in New York City, a federal judge will soon decide whether its owner Tapestry can become a bag behemoth — in a decision that will weigh big questions about how much consumers are paying for goods and the choices they have when they shop. Investors, lawyers and reporters have flocked this week to a courtroom in Manhattan for an antitrust trial over a ...

Core Insights - The retail sector earnings season reflects evolving consumer behavior and economic forces, highlighting the interplay between consumer staples and discretionary spending [1] Walmart - Walmart's revenue increased by 4.8% to $169.3 billion, driven by a 4.2% rise in comparable store sales in the U.S., indicating strong performance in existing locations [3] - The company's omnichannel strategy is effective, with global eCommerce sales up 21% year-over-year, integrating online and offline shopping experiences [4] - Walmart's operating income grew by 8.5% to $7.9 billion, showcasing cost control and efficiency in a challenging inflationary environment [5] - The company raised its FY25 guidance, expecting net sales growth between 3.75% and 4.75%, and adjusted operating income growth between 6.5% and 8.0% [6] Home Depot - Home Depot reported a 0.6% sales increase to $43.2 billion, primarily due to the acquisition of SRS Distribution Inc., but comparable sales declined by 3.3% [7][8] - The company revised its FY2024 guidance, projecting a decline in comparable sales, reflecting challenges from a cooling housing market and economic anxieties [8] - Rising interest rates are impacting affordability for renovations, while shifting consumer spending patterns are diverting funds away from home improvement [9] - Home Depot is adapting by focusing on professional contractors and smaller-scale projects, aiming to maintain its market position [10][11] Tapestry - Tapestry's net sales reached $6.67 billion, with a 1% year-over-year increase excluding currency exchange impacts, demonstrating resilience in the luxury market [13] - Coach, Tapestry's flagship brand, achieved record-breaking annual revenue exceeding $5 billion, with international sales increasing by 6% on a constant currency basis [14] - The company expects continued growth in FY25, with a 13.7% adjusted EPS growth, despite potential challenges from its pending acquisition of Capri Holdings Limited [15] Retail Landscape - The contrasting performances of Walmart, Home Depot, and Tapestry illustrate a divided retail landscape, with Walmart thriving on value strategies, Home Depot facing challenges in discretionary spending, and Tapestry showing resilience in luxury [16]