Overview

• The $8.5 billion merger between Tapestry Inc. and Capri Holdings is facing a crucial federal hearing that could determine its future.
• Capri CEO John Idol testified that the deal is essential to revitalizing the struggling Michael Kors brand.
• The Federal Trade Commission argues that the merger would harm competition in the accessible luxury handbag market, impacting middle-class consumers.
• Investors are closely watching the case, with Capri shares rising 5.1% amid the proceedings.
• The outcome of the hearing could set a precedent for antitrust enforcement in the fashion industry.