Tapestry Inc. has announced it reached an agreement to sell the Stuart Weitzman brand to Caleres for $105 million in cash. This move, disclosed on Wednesday, aims to allow Tapestry to concentrate on boosting the growth of its flagship Coach brand while also revitalizing Kate Spade’s performance. On the other hand, Caleres, which manages a range of footwear brands, believes that acquiring Stuart Weitzman will enhance sales, considering it the leading brand in its growing portfolio. Caleres also oversees 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, citing its significant influence on the footwear industry. He stated that with the addition of this iconic brand to the Caleres lineup, the company is dedicated to maintaining its heritage of quality, craftsmanship, and fit while also propelling the brand into the future.

This transaction follows a legal setback Tapestry faced, where a U.S. District judge recently blocked a merger with Capri Holdings Inc., known for luxury labels such as Versace, Michael Kors, and Jimmy Choo. The judge’s ruling emphasized that the merger would diminish competition and potentially disadvantage consumers. This ruling occurred six months after the Federal Trade Commission initiated legal action to prevent Tapestry’s proposed $8.5 billion acquisition of Capri, suggesting it would stifle competition between brands like Coach and Michael Kors within the affordable luxury handbag market.

Tapestry and Caleres have stated that they anticipate the transaction will finalize this summer, pending the usual closing conditions.