Update: Michael Kors a famous apparel brand Buys another big Fashion Label Versace for $2.2 Billion in september 2018
Michael Kors Ltd is going to buy a Gianni Versace SpA that is actually an Italian Fashion label. Michael Kors is going to buy this fashion label for 1.83 billion euros and this it is doing so by bringing American Luxury Company closer to its main aim to become the center of fashion brands. According to the company’s statement, the company is planning to raise the Versace’s sales to 2 billion dollars on an annual basis and even double than the current level of sales. The company is also planning to increase the number of stores that are being operated globally.
Stores of Michael Kors
Currently 300 stores are being operated globally out of which 200 are accelerating the development of e-commerce. Michael Kors also said that the company will remain the same as Capri Holdings Ltd. The Chief Executive Officer of Michael Kors, John Idol gave a statement in which he said that this acquisition of Versace is essentially important for our group of companies and we are committed for the growth of Versace. This Versace acquisition deal is the third-billion dollar deal that is to be made by Kors or Tapestry Inc. that is the chief competitor. This is being done since last summer as both of the rivals are shopping for high profile fashion brands so that they could add value to their portfolios. Tapestry bought the handbags label under the brand Kate Spade for cost 2.4 billion dollars and this was done last year.
Michael Kors, Jimmy Choo & Versace
And after the two months of this decision of Tapestry, Kors purchased Jimmy Choo, the high-end shoemaker for approximately 1.2 billion dollars. This decision of Acquisition has added heritage and credibility to Kors. Versace is a 40 years old fashion brand that was established by Gianni Versace. Versace is the brand fill of amazing styles and designs and has always been the center of red carpets and runway shows. Versace is a big name in the pop culture and it has strived a lot to attract more customers and to increase its sales. It has been struggling a lot, especially in China. After this entire struggle, the brand experienced success with the amazing revenues of 686 million euros and an excellent profit. The brand did a hit show in the year 2017 in September and this event has been one of the big causes of the success of this brand. In that event held, the brand brought out the most iconic collections from the 1990s and in May the designer Donatella Versace also co-hosted the Met Gala in New York.