The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Michael Kors Buys Versace in $2B Deal
The company will change its name to Capri Holdings Ltd. after acquiring the Italian fashion house.
London—Michael Kors Holdings Ltd. has reached an agreement to acquire Versace in a deal valued at $2.12 billion, the companies announced Tuesday.
Michael Kors is a New York-based publicly traded company that sells clothing, accessories, footwear, wearable tech, watches, jewelry, eyewear and perfume. The company just launched a line of sterling silver jewelry priced at $60 to $495 retail.
Michael Kors Holdings also owns luxury shoe brand Jimmy Choo.
Based in Milan, Gianni Versace S.p.A. is a 40-year-old Italian luxury label that designs, manufactures and distributes haute couture and prèt-à-porter clothing as well as accessories, jewelry, watches, eyewear, fragrances, and home furnishings, all bearing the distinctive Medusa logo.
The late Gianni Versace founded the company in 1978 and headed it until his death in 1997. Today it is run by his sister, Donatella Versace, his brother, Santo Versace, and Donatella’s daughter, Allegro Versace Beck.
The companies said Donatella Versace will remain on board as design director following the acquisition, as will Versace CEO Jonathan Akeroyd.
The transaction is expected to close in the company’s fiscal fourth quarter, subject to specific closing conditions.
Following completion of the Versace acquisition, Michael Kors Holdings Ltd. will become Capri Holdings Ltd., and own and operate three fashion brands: Michael Kors, Versace and Jimmy Choo. The name is a nod to the resort island of Capri, located off the coast of Italy.
The acquisition of Versace means the end of the independence of one of fashion’s last standalone brands, and is the second major acquisition in little more than a year for Michael Kors, which announced it was buying Jimmy Choo for $1.2 billion in July 2017.
Michael Kors said it intends to grow Versace’s revenues to $2 billion globally, expand its store count from 200 to 300, accelerate ominchannel, and focus on men’s and women’s accessories and footwear.
Acquiring Versace also will help the company grow its presence in Asian markets while cutting back on exposure in the Americas.
Michael Kors said in the release announcing the acquisition that purchasing Versace would “diversify our geographic portfolio from 66 percent Americas to 57 percent Americas, 23 percent Europe to 24 percent Europe and 11 percent Asia to 19 percent Asia.”
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.