Capri Holdings sees the accessories businesses at both Jimmy Choo and Versace as underdeveloped and has high hopes for their future, it said, as it also hailed Michael Kors' potential, despite weakness in watches.
Capri Holdings Ltd, formerly Michael Kors, beat quarterly profit estimates on Wednesday and raised its full-year revenue forecast on expectations of strong sales at its recently acquired Versace brand.
The invitation for the latest Versace show was suitably mysterious – a dossier marked "Confidential". Inside guests were invited to the first menswear show since Versace was sold to a certain US fashion group last year.
Michael Kors may have seen its shares falling sharply after sales missed analysts’ forecasts, but the message from the company’s top team was (almost) all positive as it looked to a time when it will be an $8bn group.
Michael Kors undershot analysts’ revenue estimates for the first time in almost two years in Q2, as the luxury fashion firm saw lower sales at retail stores in Europe, where it’s trying to boost its performance.
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.