Tapestry Inc.’ stock jumped 6.8% early Thursday, while Capri Holdings Inc.’s stock fell about 4%, after Tapestry said it’s terminating its $8.5 billion merger agreement with its smaller rival.

The parent companies of brands such as Coach, Kate Spade, Versace and Michael Kors decided not to proceed with a court battle.

To the surprise of no one, Tapestry ( NYSE: TPR) has walked away from a potential merger with its struggling competitor Capri Holdings Limited ( NYSE: CPRI ), the parent company of luxury brands Michael Kors, Versace, and Jimmy Choo.