Tapestry Inc. has announced its decision to sell the Stuart Weitzman brand to Caleres for a cash amount of $105 million. This strategic move, disclosed on Wednesday, aims to allow Tapestry to concentrate on bolstering the growth of its flagship Coach brand and revitalizing sales at Kate Spade. On the other hand, Caleres views the acquisition of Stuart Weitzman as a means to boost its overall sales performance, as they plan to position the luxury brand as a central offering in its extensive portfolio, which also includes well-known names such as Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, and Vionic.

Jay Schmidt, the president and CEO of Caleres, expressed his admiration for Stuart Weitzman, emphasizing the brand’s significant influence in the footwear industry. He reassured stakeholders that, as they integrate this iconic brand into Caleres, there will be a strong commitment to maintaining the brand’s legacy built on craftsmanship, quality, and fit while simultaneously advancing its future potential.

This transaction follows a recent legal setback for Tapestry, as a U.S. District judge put the brakes on its proposed merger with Capri Holdings Inc., the parent company of high-end labels including Versace, Michael Kors, and Jimmy Choo. The judge’s ruling stated that the merger would diminish competition and negatively impact consumers. This ruling was issued after the Federal Trade Commission filed a lawsuit seeking to block Tapestry’s $8.5 billion acquisition of Capri, arguing that the merger would remove direct competition in the affordable luxury handbag segment between major brands like Coach and Michael Kors.

Both Tapestry and Caleres indicated that they anticipate the completion of this transaction by the summer, pending the fulfillment of standard closing requirements.