Capri Holdings and Tapestry mutually agreed to terminate their planned $8.5 billion merger following an FTC lawsuit that blocked the deal. The acquisition aimed to merge six luxury brands under one U.S.-based fashion powerhouse. Capri and Tapestry announced the termination was in both companies' best interests. Tapestry announced it will fund a $2 billion share repurchase program with cash freed from ending the Capri merger, stating it can grow independently. Capri will hold an analyst call on Thursday to outline growth strategies and plans to revitalize its struggling Michael Kors brand.