Capri Holdings Limited (CPRI) saw its stock price decline by 4.48% on December 5, 2024, closing at $21.98, down from the previous day's close of $23.01. The stock opened at its highest point of the day, $23.01, but quickly fell to an intraday low of $21.81. The trading volume was 3,045,489 shares, which is 66.38% of the average daily volume. The primary driver of this decline was the termination of the merger agreement with Tapestry, Inc., which was mutually agreed upon due to regulatory scrutiny and an unlikely resolution by the February 2025 deadline. The Federal Trade Commission's ongoing investigation into the merger further fueled investor concerns, contributing to the stock's downward pressure.
The market's reaction reflects the uncertainty surrounding Capri's future without the merger, initially valued at $57.00 per share in cash. This development has left investors wary, as the deal was seen as a significant opportunity for Capri to enhance its market position. The regulatory hurdles and subsequent termination have cast doubt on Capri's strategic direction, leading to a sell-off.