A deal to buy Gianni Versace was announced on Tuesday by Michael Kors. The deal has been made for an amount of $2.12 billion
Gianni Versace SpA is an Italy-based company that deals in luxury goods. The group will now become Capri Holdings Limited, a brand that will stand for glamour, fashion and luxury.
The company expects that by this deal it would be able to increase its revenue in the long term to around $8 billion. It also expects to increase its retail business to over 300 stores, which is an increase of about 50 percent.
John Idol, the Chief Executive of Capri Holdings Ltd. expects that Versace will be strengthened by Michael Kors. It hopes to multiply its growth in both revenue and earnings. “It will increase our market space in luxury fashion”, he says. “We are committed in the growth of Versace as a luxury brand and with our full resource, we can grow in revenue to an extent of $2.0 billion, says John Idol.
Donatella Versace will continue to be its creative director. She will also continue to be a shareholder in the newly created group. She says, “I am proud of Versace for remaining strong in bringing in modern and fashionable culture.
CEO of Versace, Jonathan Akeroyd will also stay on with the company.
Michael Kors Holding Ltd. owns Jimmy Choo and with the deal to purchase Gianni Versace will grow even further. Kors is known for luxury handbags that are affordable too. It is expected to rival the French conglomerates and increase its market share.
Versace makes use of younger stars to woo in the younger generation. Stars like Karlie Kloss and Gigi Hadid are used to connect with young users.
Versace has about 14 million followers on Instagram, the platform which is known for its luxury brands.
Michael Kors Holdings Ltd. (KORS) has increased by 6.0 percent from last year.
Victor Dill is a gifted editor and content writer who have a core experience of writing and editing in the domains of Science, Business, and technology. With an experience of over 4 years functioning with elite publishers and authors, Victor has a cultured sense of what would make a huge story.