Capri Holdings Considers Sale of Versace and Jimmy Choo to Focus on Michael Kors Turnaround

WWD has reported that Capri Holdings is exploring the sale of Versace and Jimmy Choo, with the assistance of Barclays, as part of a strategic shift to focus on the turnaround of its Michael Kors brand. While the process is still in its early stages, it remains unclear whether the two brands will be sold together or separately, or if the sale will happen at all.

This development follows the collapse of Capri’s $8.5 billion buyout by Tapestry Inc., which was blocked due to antitrust concerns. Since the deal’s termination, Capri has experienced a significant drop in its stock value, further emphasizing the challenges it faces across its portfolio. By potentially divesting Versace and Jimmy Choo, Capri aims to allocate resources and attention to revitalizing Michael Kors, its largest and most significant brand.

Versace and Jimmy Choo have encountered their own hurdles amidst a softening luxury market and specific consumer trends. Versace has been navigating the shift from bold to understated luxury, while Jimmy Choo has faced a slowdown in occasion wear demand. Capri’s recent efforts to realign these brands with evolving consumer preferences underscore the complexity of revitalizing them in today’s competitive luxury landscape.

As Capri sharpens its focus on rebuilding Michael Kors, the sale process for Versace and Jimmy Choo will be closely watched to see if new ownership can unlock value for these storied brands while allowing Capri to execute its turnaround strategy effectively.