"Room to Raise Kors Prices Seen in Tapestry-Capri Merger, Exec Says"

An executive has indicated that the Tapestry-Capri merger may offer an opportunity to raise Kors prices. The merger could influence pricing strategies, potentially allowing for increased prices due to strategic adjustments and market positioning. This development highlights the potential financial implications and strategic decisions resulting from the merger.

A top Tapestry executive testified that if Tapestry (which owns Coach, Kate Spade, and Stuart Weitzman) and Capri (owner of Michael Kors, Jimmy Choo, and Versace) merge, there could be potential to increase Michael Kors prices and reduce discounts. The Federal Trade Commission (FTC) is challenging the $8.5 billion merger, arguing it might lead to higher prices by reducing competition.

During the trial, Tapestry’s internal consumer research suggested that Coach has been priced significantly higher than Michael Kors recently, indicating room for price increases. However, the executive clarified that this did not mean prices would definitely rise, as other factors like brand strategy, design, and material costs also influence pricing decisions.

Additionally, a slide suggested reducing discount levels for Michael Kors, but it did not account for all cost factors. Harris noted that this was part of an early analysis requested by Tapestry’s CEO Joanne Crevoiserat and was not definitive. Tapestry has declined to comment further on the litigation and expects the trial, overseen by District Judge Jennifer Rochon, to conclude by the end of September with a ruling to follow in one to three months.

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Source: reuters‍