Why Jimmy Choo, Michael Kors, Versace, Kate Spade are suddenly one company

Jimmy Choo. Versace. Michael Kors. Kate Spade.

These distinct designer brands all have something in common: a single parent company named Tapestry, Inc.

That parent company has been getting bigger and bigger throughout 2023.

Rising rates, sticky inflation and the prospect of slowing consumer spending have sparked a flurry of deals in the fashion industry as companies look to mergers and acquisitions for growth.

“Growth-oriented acquisitions really help to drive the business further, ” said Dana Telsey, CEO of Telsey Advisory Group. “New designers can create interest because you can extend your customer base, whether it’s extending your customer base older or younger, or extend your customer base globally.”

The trend of fashion consolidation among U.S.-based brands is mirroring the pattern of LVMH

in Europe, a mega fashion brand that has aggressively expanded via acquisitions. Despite all this consolidation, the consumer experience remains fairly unchanged, as businesses lean into each brand’s unique identity.

The popularity of online shopping has also provoked retailers to pursue mergers that promote expansion online and in stores. As social media creates new avenues for promotion, brands grappling with the high cost of celebrity endorsements are looking to expand their resources through mergers and acquisitions.