Report: Tapestry in Talks to Buy Capri

Coach parent Tapestry is nearing a deal to buy Michael Kors-owner Capri Holdings, the Wall Street Journal reported late on Wednesday, as the US fashion house looks to bulk up its portfolio to take on larger European rivals.

Capri’s shares surged about 23 percent in premarket trading on Thursday, while Tapestry’s shares were flat.

US luxury firms have consistently lagged behind their European peers such as LVMH, whose 75 brands include US…