Tapestry Inc., the parent company of well-known handbag brands Coach and Kate Spade, has announced its decision to sell the footwear brand Stuart Weitzman to Caleres Inc. for $105 million in an all-cash transaction. This strategic move is aimed at enabling Tapestry to concentrate more on its core businesses in the handbag market.

The deal marks a significant shift for Tapestry, which acquired Stuart Weitzman in 2015 as part of an effort to diversify its brand portfolio. Founded by designer Stuart Weitzman, the brand is recognized for its high-end footwear, including stylish boots and flats that appeal to fashion-conscious consumers. Over the years, Stuart Weitzman has positioned itself within the luxury footwear segment, commanding a loyal customer base.

Caleres, a leading global footwear company that owns brands such as Sam Edelman and Famous Footwear, sees the acquisition of Stuart Weitzman as a valuable opportunity to expand its premium offerings. With its extensive expertise in the footwear market, Caleres aims to leverage Stuart Weitzman’s established reputation to further enhance its portfolio of brands.

“This acquisition is a significant addition to our brand portfolio and underscores our commitment to growing our presence in the luxury footwear space,” said Diane Sullivan, President and Chief Executive Officer of Caleres. “We look forward to building on the strong legacy of Stuart Weitzman and expanding its reach in the market.”

For Tapestry, the sale aligns with its strategic focus on high-performing handbag brands. The company has recognized that maintaining a concentrated approach to its product lines will enhance operational efficiencies and strengthen its market position. By divesting Stuart Weitzman, Tapestry aims to allocate resources and investments toward the growth and innovation of Coach and Kate Spade, both of which have been central to its brand identity.

“This decision to divest Stuart Weitzman allows us to sharpen our focus on our core handbag brands, which continue to perform strongly in the market,” stated Joanne Crevoiserat, Chief Executive Officer of Tapestry. “We believe this sale will allow both Tapestry and Stuart Weitzman to optimize their potential moving forward.”

The transaction is expected to be completed in the coming months, pending regulatory approvals and customary closing conditions. Both companies are optimistic about the implications of the sale for their future operations within the competitive landscape of the fashion and footwear industries.