Some Big Changes are Coming to a Popular Clothing Brand
If you're a lover of designer handbags, there's some recent news that may interest you.
Some big changes are coming to Michael Kors, the global fashion luxury group.
It was announced in a recent press release that a definitive agreement has been signed for Michael Kors to acquire all of the outstanding shares of Gianni Versace, the Italian luxury fashion house.
These shares were bought for just over $2 billion USD.
This news doesn’t come as much of a surprise, especially when considering the fact that Michael Kors has had an interesting year.
In 2017, the brand announced that it would be closing between 100 and 125 stores over the next two years. Shortly after, the company said it was buying out footwear and accessories brand Jimmy Choo.
Now, it has another luxurious retailer under its belt.
Versace, recognized as one of the main luxury fashion companies around the world, is known for Italian glamour and style.
"The acquisition of Versace is an important milestone for our group. Versace was founded in 1978," John D. Idol, Chairman and CEO of Michael Kors Holdings Limited, said in a recent press release.
"For over 40 years, Versace has represented the epitome of Italian fashion luxury, a testament to the brand's timeless heritage."
According to a recent press release, as part of Michael Kors' strategic plan for the long-term growth of Versace, the brand is planning to work on growing Versace to $2 billion (U.S.) in revenues globally, building Versace's luxury runway momentum, improving Versace's marketing, increasing the global retail footprint from around 200 to 300 stores, accelerating e-commerce and omnichannel development, and expanding men's and women's accessories and footwear from 35 per cent to 60 per cent in revenue.
Buying Versace is expected to improve Michael Kors by helping the brand's revenues, diversifying its geographical portfolio, and expanding its own global luxury group.
There is still another big change happening to the Michael Kors brand.
A name change.
Capri Holdings Limited will be the new name adopted by Michael Kors Holdings Limited upon the closing of the Versace acquisition.
According to a recent press release, the name is inspired by the fabled island which is been recognized as an iconic, glamorous and luxury destination.