Joanne Crevoiserat said the idea that Tapestry could raise handbag prices just because it bought Capri is ‘ridiculous.’
, had her turn in the witness chair on Tuesday, parsing the competitive landscape and the nuances of the term “accessible luxury” with lawyers from the Federal Trade Commission.The hearing in Manhattan federal court is make or break for the deal. While Judge Jennifer Rochon will technically be determining whether or not to pause the deal with a preliminary injunction, such a delay would likely kill the transaction outright.
But she said Tapestry’s data-savvy approach, expertise and experience reinvigorating Coach could help build Michael Kors and Capri’s brands other brands, Versace and Jimmy Choo.
Coach is credited with creating the notion of “accessible luxury” ahead of its 2000 IPO, which in turn set the stage for the company’s dramatic growth and subsequent acquisitions of Stuart Weitzman in 2015 and Kate Spade in 2017. The FTC, which is entering into new territory by stepping in and trying to protect such a narrow category in fashion, has argued that the deal would allow Tapestry to raise prices on its handbags by eliminating competition. “Customers have hundreds of choices, they can turn anywhere,” Crevoiserat said.
Instead, she said the report was meant to be an example of the kind of research and data points Tapestry could use as it considered whether to make a deal.
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