Coach Parent Tapestry Stock Soars, Capri Falls as Brands Call Off Merger [Video]

Shares of Tapestry (TPR) surged Thursday morning while Capri Holdings (CPRI) stock slipped after the parent companies of a number of luxury brands called off their planned merger over ongoing legal challenges.

Tapestry said Thursday that legal challenges to the merger first announced in August 2023 remain “uncertain and unlikely to be resolved by the February 10, 2025 outside date.” Last month, a judge sided with the Federal Trade Commission (FTC), which sued to block the merger on the grounds that it would lead to less competition and higher prices for consumers.

Tapestry, which owns a number of brands including Coach and Kate Spade, said that it plans to reallocate capital now that the deal has been called off, announcing an additional $2 billion stock buyback to its outstanding $800 million on its prior authorization.

Capri Holdings, the owner of Versace, Michael Kors, and Jimmy Choo, said it plans to alter its strategies to focus on growing its …