The cat was already out of the bag yesterday but that didn’t detract from the impact of the news on Tuesday that Michael Kors is acquiring Versace for around $2 billion and changing its name to Capri Holdings.
The fashion house's efforts to revamp stores as well as its high-end shoe brand Jimmy Choo paid off as the company topped Wall Street’s quarterly profit estimates on Wednesday and raised its full-year earnings forecast.
Planned investment in Jimmy Choo may have dragged down the share price at Michael Kors but it's upbeat for the luxury brand’s prospects and is working to boost its appeal to Millennials and drive accessories expansion.
Michael Kors is entering the golf world through a sponsorship of pro golfer, Charl Schwartzel, who will serve as the company's first brand ambassador in golf. Schwartzel will help expand the brand's sportswear category.
Jimmy Choo has the potential to be a $1bn dollar brand and the success of its integration into the Michael Kors group has made its new owner hungry for more acquisitions and happy to accelerate its accessories expansion.