Last year, when news broke that Michael Kors (Holdings Limited) would be buying Versace for $2.12 billion, the internet didn’t know what to think. Did Versace just sell out? Donatella Versace’s address of the deal, posted via her personal Instagram, didn’t do much to resolve any concerns. Its creative lead assured Versace’s vision wouldn’t change, but the opposite — that it’d get better.
Today, MKHL has changed its name to Capri Holdings Limited and finalized its acquisition of Versace. It edits its New York Stock Exchange sticker symbol from KORS to CPRI, as well.
“With the acquisition of Versace, we have now created one of the leading global fashion luxury groups in the world,” chairman and CEO of Capri Holdings Limited John D. Idol said, via press release. “The new name for our group, Capri Holdings, is inspired by the fabled island which has long been recognized as an iconic, glamorous, and luxury destination. The island’s spectacular three rock formation, formed over 200 million years ago, is symbolic of the timeless heritage and strong foundation that is at the core of each of the three founder-led brands.” He references, of course, Michael Kors, Jimmy Choo, and now Versace. In 2017, the global luxury fashion group bought Jimmy Choo for $1.2 billion.
For now, the plans for Versace include growing its global business — by a lot. The group's long-term plans include growing total revenue to $8 billion, with Versace accounting for $2 billion of that. In 2017, Versace brought in $18 million in profit on approximately $770 million of revenue. Last year's revenues are expected to reach $850 million. To reach their $2 billion target, Versace is seeking to beef up its currently underdeveloped accessories and shoe lines, which is a strategy most luxury brands, like Michael Kors and even Celine, rely on. Despite opening up 100 more stores, it's expected to decrease its presence in America and increase its influence in Europe and Asia.
It's still too soon to tell whether or not this is a good thing for Versace, aesthetically speaking, but prospects certainly look bright for Capri Holdings Limited. After its purchasing of Jimmy Choo, the shoe line accounted for a 26.3% rise in revenue, accounting for 17.2% of the company's profits. And, considering its fall 2019 collection has been in production since before the sale was finalized, we'll have to wait until the latter half of the year to see any results; no doubt it'll remain fur-free. Seeing as Versace is one of about three of the most important names in luxury fashion, our eyes are staying peeled.
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