A federal court sided with the FTC to block Tapestry acquiring Capri Holdings, in a move Tapestry claims is "incorrect on the law and the facts." It plans to appeal.

Capri had more to gain from the acquisition, investors say. Meanwhile, a slowing market for luxury goods slowly made the deal less attractive for Tapestry investors.

A U.S. judge blocked the pending $8.5 billion merger of U.S. handbag and accessories maker Tapestry and Capri on Thursday, a victory for the Federal Trade Commission that is a likely death blow for the deal.