A Stylish Welcome to Capri Holdings
By: Hope Wilkos, Writer
To some, the news came as a total surprise, to others it signified the end of a European fashion era and the beginning of a brand new worldwide fashion empire.
On September 21, 2018, the VERSACE Spring 2019 Fashion show attracted a very stylish crowd at Milan Fashion Week Spring 2019. The high-profile audience eagerly anticipated what Donatella Versace had in store for them this season. Donatella, as customary, did not disappoint. Headlining the runway presentation was one of ‘THE’ chic supermodels of all time, Shalom Harlow. She was a true pro, ruling the runway and loving every minute of the spotlight. Modeling the VERSACE signature looks, current-day favorites Gigi and Bella Hadid along with Kaia Gerber, Kendall Jenner and Emily Ratajkowski were also part of this all-star cast and looking stunning as they strutted their stuff. Defining colors and prints were elegant made for the sophisticated woman with a desire to stand out amongst her friends and peers. Shorter dresses were body-hugging, accentuating the hourglass silhouette while the transparent printed tulle dresses layered over more conservative shapes were in sharp contrast. The VERSACE emblem could be seen on a silky tee paired with a menswear-inspired suit in a bright orange and blue pattern. Toned down ruffles and plenty of leather in bold, emblazoned tones, were instinctively intuitive of the brand.
With such rave reviews following that day at Milan Fashion Week, fans would have believed that they were in for many more exciting collections from VERSACE for seasons to come. But this would be the final bow for the creative queen under the VERSACE name.
On September 24, 2018, the fashion industry learned that iconic American designer, Michael Kors, had decided to acquire VERSACE which came with a hefty price tag of $2.1 billion, company shares and plenty of debt. The deal is expected to fully close in the last quarter of 2019 (subject to regulatory approval) and instead of falling under the Kors’ namesake, Michael Kors’ company will be known as Capri Holdings. “We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth,†said John Idol, chairman and CEO of Michael Kors.
Michael Kors is an extremely savvy entrepreneur and has already outlined his plans for the new company once the acquisition takes place. Earnings will be reduced in Year 1, and contributing profits will start in Year 2. Capri Holdings will expand their global retail footprint with over 100 new stores planned to open. E-commerce will be enlarged to reach a far wider audience and the accessories and footwear division will be expanding from 35% to 60%, capturing additional buyers in a different area of the business. Donatella Versace will stay on with this new venture as Creative Director. She stressed that she is fully committed to the new global fashion luxury group. By agreeing to this purchase, Donatella believes that this will assist VERSACE in reaching its fullest potential. US private equity firm, Blackstone, having bought 20% of VERSACE in 2014, has agreed to give up their investment portion.
Michael Kors has always had high expectations for his company with the goals clearly defined. In July of 2017, Kors purchased Jimmy Choo, high-end luxury shoe brand, iconic in their various styles. With the infinite amount of competition in the marketplace today, Michael Kors wants to continue his stature and accomplished level of success for a long time to come. This decision, therefore, makes perfect sense. With reported gross profits in 2017 of $2.66 billion, Michael Kors is where he wants to be and fueling even greater expectations for the future.
Goodbye and VERSACE, Hello CAPRI HOLDINGS!
Photo Credit: Jacopo Raule/Getty Images, Michael Kors Facebook Page.
