Overview

• The Federal Trade Commission's lawsuit blocked the merger, citing concerns over reduced competition in the accessible luxury handbag market.
• A federal judge's ruling in October supported the FTC's stance, leading to the termination of the merger agreement by both companies.
• Tapestry, owner of Coach and Kate Spade, plans to redirect its resources towards a $2 billion stock buyback program.
• Capri Holdings, which owns Versace and Michael Kors, faces challenges as it seeks to revitalize its brands independently.
• Analysts view Tapestry's decision as a prudent move, avoiding potential overpayment and resource strain, while Capri's path forward appears more uncertain.