Footwear Specialist Caleres Acquires Stuart Weitzman Brand From Tapestry

Tapestry just announced it has reached an agreement to sell the storied shoe brand Stuart Weitzman to Caleres. The acquisition should put Caleres, which specializes in footwear, over $3 billion in sales once the deal closes this summer.

Caleres got it for the bargain price of $105 million in cash, a far cry from the $530 million Coach paid back in 2015. Coach is the leather goods brand that became Tapestry, which also owns Kate Spade.

Stuart Weitzman never fit comfortably under Tapestry’s leadership. In 2016, Stuart Weitzman generated $345 million and operated 75 stores. In 2024, it brought in only $241 million, despite growing its footprint to 94 stores, 34 in the U.S. and 60 internationally.

It’s a win/win for both companies. Stuart Weitzman finds a better fitting home and Tapestry can focus on its core mission to continue Coach’s leather goods leadership and grow Kate Spade fashion brand.

Tapestry Wins

Tapestry’s stock took a much needed bounce yesterday, rising 36% since the first of the year, after its plans to acquire Capri Holdings, owner of Versace, Jimmy Choo and Michael Kors, were quashed by the FTC last November. And on a side note: Prada is looking at Versace as a possible acquisition target, as reported by Bloomberg.

Raymond James analyst Rick Patel views the deal favorably. “We’re not surprised to see SW being sold as we don’t consider it to be an asset that’s critical to the Company’s growth objective. It should give management the ability to focus more on the core business, accessories in particular.”

Now Tapestry can get back to doing what it does best, continuing to grow its powerhouse $5 billion Coach brand. Kate Spade remains problematic, down 7% over the last two years to $1.3 billion, but in casting off Stuart Weitzman, management can devote more attention to revitalizing that brand.

“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,” Tapestry CEO Joanne Crevoiserat said in a statement.

“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,” she continued.

Caleres Wins More

Indeed, Stuart Weitzman has found a more fitting home under Caleres. It operates over 800 Famous Footwear stores and counts Allen Edmonds, Dr. Scholl’s, Vionic, Naturalizer, Sam Edelman, Vince, Rykä and LifeStride among its portfolio of brands.

Last year, Caleres generated $2.8 billion after hitting a rough patch that saw revenues down 5% year-over-year. The shortfall continued into the third quarter 2024 with revenues off 3%, though Famous Footwear accounted for that decline. Its brand portfolio yielded 1% growth.

Historically, Caleres revenues have been split about 55% Famous Footwear and 45% brands, but CEO Jay Schmidt expects that to change.

“The acquisition of Stuart Weitzman advances our strategic agenda to grow our Brand Portfolio segment with more global and direct-to-consumer reach,” he said in a statement. “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.”

Preserving The Stuart Weitzman Legacy

Stuart Weitzman shoes have a rich legacy of craftsmanship, quality and design, and they’ve walked many a red carpet, most recently with Ariana Grande at the Golden Globe awards. The eponymous brand was founded in 1986 producing shoes in Elba, Spain known for its shoemaking expertise. Most of Stuart Weitzman shoes are still made there.

Stuart grew up in the shoemaking business. His father, Seymour, ran The Mr. Seymour shoe company in Massachusetts. Stuart retired in 2017 and sadly his brand has suffered from his loss.

Caleres’ Schmidt promises to preserve the brand’s legacy and bring it back to past glory. And it give Caleres a foothold into the women’s luxury shoe market where it has limited presence.

“I have long admired Stuart Weitzman for the brand’s pivotal role in shaping the footwear industry,” he concluded. “As we bring this iconic brand into the Caleres portfolio, we are committed to preserving its legacy of craftsmanship, quality and fit while driving it forward. We will leverage our demonstrated, best-in-class footwear capabilities while pursuing category and channel growth.”

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