Will Versace become an Italian brand again? There is a possibility, because Capri Holdings wants to sell it. And it would also like to divest Jimmy Choo in order to obtain useful financial resources to relaunch Michael Kors, its most important brand. The multinational company, in order to achieve this goal, has reportedly appointed Barclays to explore the market to look for buyers.
Seeking buyers
Confirming rumors that have been circulating for some time, WWD cites financial sources. The search for a buyer has just begun, and it is unclear whether the two brands will be for sale together or separately. Or, they may not be sold in the absence of a suitable offer. Divesting Versace and Jimmy Choo would give Capri Holdings time and resources to devote to Michael Kors, clearly its biggest brand but in need of a turnaround.
Slow performance
In the last few quarters, Versace’s performance has been very slow. On the one hand, its style is not quite in line with the quiet luxury trend. On the other hand, Capri Holdings CEO John Idol acknowledged that it has made at least two strategic mistakes. First, “We eliminated too many items that gave Versace recognition, which led to a less exciting brand and product identity”. Second, “We also significantly reduced product offerings for aspirational consumers while trying to elevate the brand”. In other words, the average price of the offering has increased, and the appeal to the aspirational consumer has slowly disappeared.
Jimmy Choo’s slowdown
For its part, Jimmy Choo has seen sales of its stilettos slow down after the post-Covid recovery. Idol said the brand has expanded its casual offerings and will now “respond more quickly to this change in trend”. Will Capri or the new owner benefit?
Read also:
