Such is the plan: to increase Versace’s revenues up to 2 billion dollars (compared to 850 million dollars at present), focusing on accessories and footwear, which will be worth 60% of the overall turnover, compared to present 35%. This is the primary aim on which Capri Holdings, alias Michael Kors, and new owner of Versace, are going to settle their development plans, recently presented before investors. As reported by the British edition of Fashion United, according to these plans retail business will increase (stores, currently 200, will go up to 300); likewise, e-commerce development, through all channels, will enjoy a rapid boost, and also Versace’s marketing will be improved. In so doing, Versace will be able, at that point, to take on the most important European competitors, such as Louis Vuitton and Gucci. Donatella Versace will still be the creative director of the brand, and will be one of the shareholders too. After buying out Versace, the turnover of Capri Holdings group will reach about 8 billion dollars in a long term and will also “give the opportunity to create long-term operating synergies, which might potentially knock down costs”. As regards Jimmy Choo, another brand in the portfolio run by former Michael Kors Holding, they aim to reach 1 billion dollars in terms of revenues: they are planning to achieve such accomplishment by developing retail business, enhancing footwear growth and expanding accessories, which will be worth 50% of overall incomes. Yet such plans have not fully satisfied investors: it is no coincidence that rating agency Standard & Poor’s downgraded the outlook of the US group, from “positive” down to “steady”, therefore confirming a triple B rating.
Capri Holdings plans to augment Versace’s revenues up to 2 billion dollars, while boosting accessories and footwear (60%)
