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Global|Michael Kors Buys Versace, Paying $2.12 billion

Oct 1, 2018.Xueqing DingTokyo, JP
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Michael Kors has recently two major announcements: one, the acquisition of Gianni Versace S.p.A., the parent company of Italian luxury brand Versace for $2.12 billion, followed by the change of the group name from Michael Kors Holdings Limited to Capri Holdings Limited. These successive initiatives also indicate that US company Michael Kors will soon be officially transformed into a luxury group with a comprehensive brand. John D. Idol, CEO of Capri Holdings Limited says, “Versace which was founded in 1978, has represented Italian luxury fashion for over 40 years, and we are very excited to have Versace as part of out family of luxury brands, and we are committed to investing in its growth.With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues. 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.” After the acquisition, John D. Idol added that Jonathan Akeroyd will continue to serve as CEO of Versace, and Donatella Versace as creative director.

In addition to increasing Versace's brand sales to $2 billion, Capri Holdings Limited plans to expand its stores from approximately 200 to 300, strengthen its e-commerce and Omni Channel to expand their sales of men's and women's accessories and footwear from 35% to 60% of the revenues. Capri Holdings Limited also announced that the group's revenue target is $8 billion, with Asia's sales aim increasing from 11% to 19%. In 2017, Michael Kors acquired the British footwear brand Jimmy Choo for $1.2 billion. With the successive acquisitions, one can feel the determination in the group's transformations.