Michael Kors has bought Versace for $2.1 billion as the American fashion brand moves closer to its goal of becoming a luxury fashion conglomerate.
The Luxury handbag maker, Michael Kors, has made his interest in acquiring the renowned Luxury brand no secret. After recently buying Jimmy Choo just last year for $1.2 billion, he releases a statement saying, “We are creating a global luxury fashion group. Our focus is on international fashion luxury that are industry leaders.” Under Kors, Versace will increase its accessories offering from 35% to 60% of revenues to secure a year-on-year profitability – a policy adopted by Michael Kors, itself.
Capri Holdings will also increase Versace’s global retail footprint from approximately 200 to 300 stores and accelerate its e-commerce and omni-channel development to support this.
It is believe that Versace will grow to over $2 billion in revenues. Jonathan Akeroyd, Versace chief executive, who will remain in the position after the deal, commented earlier this year that he expected the brand to achieve sales of more than €1 billion in 2018, compared to its sales of €686 million in 2016.
In an Official Statement, Donatella Versace said, “This is a very exciting moment for Versace. It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves. Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential. We are all very excited to join a group led by John Idol, whom I have always admired as a visionary as well as a strong and passionate leader. We believe that being part of this group is essential to Versace’s long-term success. My passion has never been stronger. This is the perfect time for our company, which puts creativity and innovation at the core of all of its actions, to grow.”
As a sign of their commitment to the new global Luxury Fashion Group, the three Versace stake holders will become shareholders in Capri Holdings.