Michael Kors Holdings Ltd Begins 2019 As Capri Holdings
It was the much-publicised merger of 2018, and, on the eve of 2019, the acquisition of Versace was made complete. Michael Kors Holdings Ltd has officially changed its name to Capri Holdings. From January 2, it will trade under the new stock market ticker CPRI.
Michael kors bought Versace for $2.1 billion in September 2018 as part of its action plan to become a luxury fashion conglomerate to rival Kering and LVMH. Under the Capri Holdings label – the name it chose to reflect its new portfolio approach – also sits Jimmy Choo, which Kors acquired in 2017 for $1.2 billion.
“Versace has long been recognised as one of the world’s leading fashion luxury houses, and is synonymous with Italian glamour and style,” John Idol, chairman and chief executive officer of Michael Kors, said in a statement on December 31. “We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands.”
Under the instruction of its new parent company, Versace will increase its accessories offering from 35 per cent to 60 per cent of revenues to secure a year-on-year profitability – a policy adopted by Michael Kors, itself. Capri Holdings will also up Versace’s global retail footprint from approximately 200 to 300 stores and accelerate its e-commerce and omni-channel development to support the company goal to make an annual turnover of $2 billion.
The aim of the parent company itself is to reach a revenue stream of $8 billion from its new client list. How shares of CPRI perform during the first days of trading in 2019 will, however, prove whether or not Idol’s belief that “we have created one of the leading global fashion luxury groups in the world” is truthful.