Michael Kors Set to Purchase Versace *Update* Confirmed!

[TaylorBinque]

One thing for sure though is that Kors perform very well in China and maybe that is an advantage for Versace and Choo. I think it's a smart move of Donatella's taking the money. Versace, while it has an iconic status within luxury hall of fame, the sales are not turning out fast enough. That could be a lack of hit accessories. Definitely more money to invest in this department can help that. As much as I see LVMH as a more suitable partner, they have been running brands to grounds interm of creativity. I mean, look at MGC at Dior, Virgil at LV, Berluti and god knows what Patou will turn out. Kenzo had a few buzz at the begining and then it died off fast. And it's not like Versace collections have been extremely amazing until the Kors merge.

 

[Benn98]

Versace Merges Its Men’s and Women’s Shows

Versace is bringing its men’s and women’s collections together on their main season runway for the first time. “Today, we live in a society in which we are all talking to one another and influencing the way we look at things,” says Donatella Versace. “This has happened to me as well and this is why I felt the need to concentrate my creative focus, and design a collection with one point of view, one vision, one world of Versace. It’s not just about inclusivity and diversity, it’s about being equal, also on the runway.” The first co-ed show will take place in February during Milan Fashion Week.

Fashionweekdaily

 

[Benn98]

Controversial Versace T-shirt dents Capri's sales in China

Aditi Sebastian, Uday Sampath Kumar

(Reuters) - Capri Holdings Ltd (CPRI.N) blamed a controversy around a Versace T-shirt that labeled Hong Kong and Macau as countries for denting the luxury label’s sales in China, adding it would now take a “very cautious” approach to its business in the country.

Versace, which Capri bought last year for about $2 billion, came under fire over the T-shirt in August, forcing the Italian luxury label and its artistic director Donatella Versace to apologize.

Versace had then said it had made a mistake and as of July 24 had stopped selling and destroyed the T-shirts.

“We’ve got a very cautious view of how we’re planning the Greater China business in total for Versace for the balance of the year,” Capri Chief Executive Officer John Idol said on a post-earnings call on Wednesday. Idol, however, did not give details on the new strategy.


He added that the brand would likely see a recovery only next year. In the latest reported quarter, Versace accounted for 16% of the company’s total revenue.

The company also blamed protests in Hong Kong and higher expenses for a lower-than-expected second-quarter profit and forecast a dip in Hong Kong’s contribution to total revenue in fiscal 2020.

“Hong Kong, for the company, has had a far more material impact than we had ever thought,” Idol said.

Capri said comparable sales for Milan-based Versace was flat compared with a year earlier, while comparable store sales at Jimmy Choo declined in the mid-single digits.

Adjusted net income fell 7.8% to $177 million, or $1.16 per share, in the quarter ended Sept. 28, from a year earlier and missed analysts’ expectation of $1.24 per share.

Total revenue rose 15.1% to $1.44 billion, in line with analysts’ estimates, according to IBES data from Refinitiv.

The company’s shares fell over 4% to $32.60 on Wednesday.

Reuters