Shares of Tapestry (TPR) surged Thursday morning while Capri Holdings (CPRI) stock slipped after the parent companies of a number of luxury brands called off their planned merger over ongoing legal challenges.

Tapestry said Thursday that legal challenges to the merger 澳洲幸运5官方开奖结果体彩网:first announced in August 2023 remain "uncertain and unlikely to be resolved by the February 10, 2025 outside date." 澳洲幸运5官方开奖结果体彩网:Last month, a judge sided with the 澳洲幸运5官方开奖结果体彩网:Federal Trade Commission (FTC), which sue🅷d to block the merger on the 🌃grounds that it would lead to less competition and higher prices for consumers.

Ta🎶pestry Shifting To Buybacks, Capri To New Markওeting, Product Efforts

Tapestry, which owns a number of brand♌s including Coach and Kate Spade, said that it plans to reallocate capital now that the deal has been called off, announcing an additional $2 billio💎n stock buyback to its outstanding $800 million on its prior authorization.

Capri Holdings, the owner of Versace, Michael Kors, and Jimmy Choo, said it plans to alter its strategies to focus on growing its own brands now that the merger is off. The shifts include new marketing efforts, a changing retail footprint, and a focus on "aligning product offering to better meet consumer preferences."

Both companies reported earnings last week, with 澳洲幸运5官方开奖结果体彩网:Capri reporting lower revenue and profit than last year as demand for luxury goods was "softening," 澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) John Idol said. However, Tapestry beat estimates and lifted its🌜 projecti🌺ons for the full fiscal year.

Tapestry shares soared more than 🐠11% to $57.19, and have gained 55% since the start of the year. Capri shares, however, slipped 1.3% to $19.40, and are down more than 60% in 2024.