Tapestry to Sell Stuart Weitzman Brand to Footwear Owner Caleres

The fashion holding company Tapestry said Wednesday that it has agreed to sell the Stuart Weitzman brand to Caleres, which owns several footwear brands, including Famous Footwear. Caleres will spend $105 million in cash on Stuart Weitzman, which sells luxury shoes and boots and was created by its namesake in 1986. Tapestry and Caleres said the deal is expected to close this summer.

Tapestry CEO Joanne Crevoiserat said in a press release that offloading Stuart Weitzman would ensure that the company's remaining brands — Coach and Kate Spade New York — are "positioned for long-term success and that we maintain a sharp focus on our largest value creation opportunities." She added that Tapestry would focus on sustaining Coach's leadership and momentum while "reinvigorating Kate Spade to drive durable organic growth and shareholder value."

Meanwhile, Caleres' CEO said buying Stuart Weitzman would help grow sales at the company and will become the portfolio's lead brand. In addition to Famous Footwear, Caleres also owns Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.

Total Retail's Take: Vogue Business reported that Stuart Weitzman has been the underperformer in the Tapestry portfolio for some time (Tapestry acquired Stuart Weitzman in 2015 from Sycamore Partners). Tapestry has made it clear it will focus on its remaining brands after an $8.5 billion deal to acquire Capri Holdings, parent of Versace, Michael Kors, and Jimmy Choo, fell through when the Federal Trade Commission successfully blocked the merger, accusing Tapestry of anticompetitive behavior. So with a focus on improving its bottom line, Tapestry is unloading Stuart Weitzman and will redouble its efforts to boost sales and profits at Coach and Kate Spade.