Caleres Finalizes Agreement to Acquire Stuart Weitzman from Tapestry, Inc.
Caleres a market-leading portfolio of consumer-driven footwear brands, has officially signed a definitive agreement to acquire Stuart Weitzman from Tapestry, for $105 million, subject to customary adjustments. This strategic acquisition solidifies leadership position in the women’s fashion footwear industry, particularly within the contemporary luxury segment, further enhancing its brand portfolio and long-term growth trajectory.
Strategic Importance of the Acquisition
The acquisition of Stuart Weitzman represents a significant step forward in strategy to expand its brand portfolio and increase its footprint in the global fashion footwear market. Stuart Weitzman is renowned for its high-quality craftsmanship, innovative designs, and impeccable fit, making it a valuable addition to Caleres’ existing lineup of footwear brands.
Jay Schmidt, President and CEO of Caleres, expressed enthusiasm for the acquisition: “I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry. As we bring this iconic brand into the portfolio, we are committed to preserving its legacy of craftsmanship, quality, and fit while driving it forward.”
Schmidt emphasized that the acquisition aligns perfectly with broader strategic vision: “The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with a greater global and direct-to-consumer reach. 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 continue to contribute over half of our operating profit.”
Financial and Operational Impact
Caleres has structured this acquisition to maximize profitability and operational efficiency. The transaction is expected to close in the summer of 2025, and Caleres will finance the deal using its revolving credit agreement. The company anticipates operating Stuart Weitzman profitably post-integration, leveraging its best-in-class capabilities in footwear production, distribution, and retail management.
The addition of Stuart Weitzman is projected to boost Caleres’ earnings and revenue diversification. By integrating a luxury contemporary brand into its existing portfolio, Caleres expects to benefit from increased brand equity, access to a broader consumer base, and expanded market reach, particularly in the premium women’s footwear segment.
Tapestry’s Perspective on the Deal
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., explained the rationale behind the sale: “Stuart Weitzman is an iconic global footwear brand, whose teams have added to the passion, creativity, and craftsmanship of our organization over the last decade. 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.”
Crevoiserat also highlighted Tapestry’s commitment to refining its focus on key brands such as Coach and Kate Spade: “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.”
This sale allows Tapestry to allocate resources toward its core brands while ensuring that Stuart Weitzman continues to thrive under new ownership.
Market Implications and Industry Impact
The acquisition is expected to strengthen Caleres’ competitive position within the luxury and premium footwear market. By adding Stuart Weitzman to its brand lineup, Caleres enhances its ability to compete with other high-end footwear companies such as Jimmy Choo, Manolo Blahnik, and Christian Louboutin.
This deal also signals a growing trend in the footwear industry, where major companies are consolidating premium and contemporary brands to streamline operations and capitalize on brand equity. Caleres’ expertise in footwear manufacturing, supply chain management, and direct-to-consumer strategies positions it well to drive further growth for Stuart Weitzman.
Integration and Future Growth Plans
Following the transaction’s closing, Caleres will implement a strategic integration plan to ensure a seamless transition. The company will focus on:
- Expanding Stuart Weitzman’s global presence: Leveraging Caleres’ distribution network to enhance international sales.
- Enhancing digital and direct-to-consumer channels: Increasing e-commerce capabilities to drive online sales.
- Product innovation and category expansion: Introducing new footwear styles while maintaining Stuart Weitzman’s commitment to craftsmanship and quality.
- Operational efficiencies: Optimizing supply chain and production processes to improve profitability.
Caleres’ acquisition of Stuart Weitzman aligns with its long-term vision of maintaining a balanced portfolio of brands that appeal to diverse consumer demographics. By integrating Stuart Weitzman, Caleres gains a strategic foothold in the premium footwear market, which is expected to drive sustained revenue growth.
Financial Advisors and Legal Representation
To facilitate this transaction, both companies engaged top-tier financial and legal advisors:
- Caleres: BofA Securities served as the financial advisor, with BCLP (Bryan Cave Leighton Paisner) providing legal counsel.
- Tapestry, Inc.: Morgan Stanley & Co. LLC served as the financial advisor, with Latham & Watkins LLP acting as legal counsel.
Caleres Business Update and Future Outlook
Alongside this announcement, Caleres provided a business update for the fiscal year ending February 1, 2025. The company expects to report consolidated net sales and earnings per diluted share in line with its most recent guidance. Caleres plans to report its earnings on March 19, 2025, before the market opens.
Looking ahead, Caleres remains committed to strategic growth through acquisitions, brand development, and digital transformation. The addition of Stuart Weitzman is expected to accelerate the company’s expansion plans, particularly in the direct-to-consumer and global retail segments.
