Luxury brand Michael Kors Holdings Ltd. (NYSE: KORS) announced Monday morning that it has closed its acquisition of fashion brand Versace and will change its name to Capri Holdings effective January 2. Capri stock will trade on the New York Stock Exchange under the ticker symbol CPRI.
When the acquisition of Versace was announced in late September, the deal was valued at $2.12 billion in cash. The name change was announced at the same time, to become effective on the closing date of the Versace acquisition.
Capri Chair and CEO John Idol said:
Versace has long been recognized as one of the world’s leading fashion luxury houses, and is synonymous with Italian glamour and style. We are thrilled that the house of Versace is now part of the Capri Holdings family of luxury brands. We look forward to working with Chief Creative Officer Donatella Versace, Chief Executive Officer Jonathan Akeroyd, and their incredibly talented team to continue to drive Versace’s growth and success globally.
[nativounit]
Kors/Capri has struggled in its two most recent quarters. The share price has lost about 50% since August. That’s worse than the SPDR S&P Retail ETF (NYSEARCA: XRT), which has dropped about 30%, or Tiffany & Co. (NYSE: TIF), down about 40% since August, or Nordstrom Inc. (NYSE: JWN), down about 25%.
Capri, which now owns Jimmy Choo as well as Versace and Kors brands, expects long-term revenue growth to around $8 billion, up from the $4.7 billion posted in its most recent fiscal year. The Kors brand is tabbed to rise to $5 billion, with Versace adding $2 billion and Jimmy Choo contributing $1 billion.
The plan for Versace includes raising the store count from around 200 to 300, accelerating e-commerce and omnichannel sales, and expanding men’s and women’s accessories and footwear from 35% to 60% of revenues. Capri also plans to reduce its U.S. portfolio in the Americas from 66% to 57% and raise its sales in Europe from 23% to 24% of the portfolio total. The company’s Asia portfolio is expected to rise from 11% to 19%, with the bulk of the increase coming from China.
Kors closed down about 1.8% on Friday at $37.18 a share but was up 1.5% to $37.78 shortly after Monday’s opening bell. The consensus 12-month price target is $65.38.
[recirclink id=514707]
[wallst_email_signup]
Top Gaining Stocks
Top Losing Stocks