Fashion dispatch: FTC moves to block Tapestry-Capri merger, and Celine might be eyeing a Ralph Lauren designer

It’s Friday, and we’re back with Retail Brew’s weekly rundown of everything you need to know in fashion. This week, the FTC has sued to block an $8.5 billion acquisition deal, and a French luxury brand may be eyeing a designer at an American fashion giant.

FTC moves to block Tapestry-Capri merger

If you’ve been following this column, you probably know all about the proposed $8.5 billion takeover of Capri Holdings by Tapestry. But in a surprising turn of events, the Federal Trade Commission has sued to block the merger, saying it would “eliminate direct head-to-head competition between Tapestry’s and Capri’s brands.” The FTC also has concerns about higher prices for US consumers, as well as lower employee wages.

Why this matters: The merger would allow Tapestry, which owns brands like Coach and Kate Spade, to acquire Capri, which owns Versace and Michael Kors, and has been in the making since August last year. If it went through, it would put Tapestry in the big leagues as far as the European luxury market goes. The deal only needs approval from the US after the EU and Japan approved it.

More job cuts at Nike

Nike will cut around 740 jobs at its headquarters by this June, the company announced. The layoffs come as part of a “multiyear cost-cutting plan,” Bloomberg reported, and mark the “second phase of impacts.”

Why this matters: In February, CEO John Donahoe announced the company would eliminate 2% of its global workforce as part of its plan to save $2 billion in the next three years. The retailer lowered its full year sales outlook in December. Other cost cutting measures included simplifying its product assortment and incorporating automation and tech.

Celine may be looking to Ralph Lauren for a replacement

Polo Ralph Lauren’s creative director, Michael Rider, has once again captured the attention of French luxury house Celine, sources told WWD. The designer may be on track to replace Hedi Slimane, who is reportedly stepping down from his current creative director position at Celine after six years.

Why this matters: If Rider, who previously served as design director of ready-to-wear at Celine, were to secure the coveted position, he’d be leading creative for one of the strongest luxury brands in LVMH’s portfolio, which Celine joined in 1996. In fact, per a September 2023 survey by Brand Finance, Celine was named the fastest growing apparel brand—at the time, it was valued at $2.9 billion.