04:27 AM EDT, 10/25/2024 (MT Newswires) -- Tapestry (TPR) said Thursday it plans to appeal a US federal court decision granting the Federal Trade Commission's request to block its acquisition of Capri Holdings ( CPRI ) .

"Today's decision granting the FTC's request for a preliminary injunction is disappointing and, we believe, incorrect on the law and the facts," said Tapestry, which owns luxury apparel brands Coach, Kate Spade, and Stuart Weitzman. "We intend to appeal the decision, consistent with our obligations under the merger agreement."

In April, federal antitrust regulators said the deal would "eliminate direct head-to-head competition between Tapestry's and Capri's brands."

However, Tapestry said that the companies are operating in an industry that is "intensely competitive and dynamic."

"We face competitive pressures from both lower- and higher-priced products and continue to believe this transaction is pro-competitive and pro-consumer," Tapestry said.

Shares of Tapestry rose more than 13% in recent premarket activity. Capri fell more than 45% recently.

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