The luxury fashion industry has taken center stage following reports that Italian fashion house Prada is nearing a deal to acquire Versace from Capri Holdings Limited. The potential acquisition, estimated at $1.4 billion, contributed to a 5% rise in Capri’s share price during the latest trading session.

Recent reports from Kohl's Corp. (KSS) and Dick's Sporting Goods Inc. (DKS) paint a concerning picture for American retailers. Both brands have expressed worries about the state of consumers in the US, leading to a revision of expectations regarding sales and profits.