Capri Holdings Ltd., a renowned fashion powerhouse headquartered in New York, is gearing up to make a strong comeback after the challenges posed by the Covid-19 pandemic. The company, known for its iconic brands Versace, Jimmy Choo, and Michael Kors, recently unveiled its strategies for revitalizing its business during the Goldman Sachs Retail Conference.
Although facing a slowdown in retail sales earlier this year, Capri Holdings witnessed a gradual uptick in sales trends starting from May. The company attributes this recovery to its effective consumer engagement tactics and a well-established global distribution network. Placing Versace at the forefront of its revival plans, Capri is aiming to boost the brand’s annual revenues to an impressive $2 billion.
John D. Idol, the CEO and chairman of Capri Holdings, emphasized the significance of Versace’s prominence in the fashion industry, especially amidst challenging circumstances. By leveraging the brand’s strong presence on runways and its powerful marketing strategies, Capri intends to expedite the growth of Versace through an expansion in e-commerce, omnichannel development, and retail presence. The company’s goal is to launch 300 new stores globally, with a keen focus on expanding the accessories and footwear lines to drive revenue growth.
Looking ahead, Capri envisions ramping up Jimmy Choo’s annual revenue to $1 billion by bolstering the brand’s luxury sneaker collection and enhancing its online retail capabilities. Accessories are anticipated to contribute 50% of Jimmy Choo’s revenue, while the plan includes the launch of 300 new store locations worldwide. Concurrently, at Michael Kors, Capri is determined to reinvigorate the brand’s revenue growth by prioritizing customer engagement, enhancing its signature offerings, and expanding its e-commerce footprint. The company also aims to double revenues in Asia and bolster the men’s business segment.
Despite facing challenging quarterly results, Capri Holdings is optimistic about its financial prospects moving forward. While the first quarter of 2020 saw a 66.5% drop in revenue and a net loss of $180 million, a surge in e-commerce sales and a rebound in demand for Versace and Jimmy Choo products in China have instilled hope for a brighter tomorrow for the luxury fashion conglomerate.
With ambitious revenue targets and a well-thought-out growth strategy in place, Capri Holdings is well-positioned to navigate through the post-Covid recovery phase with a strong focus on its luxury fashion brands, particularly Versace, as the driving force for growth and success in the years ahead.
To learn more about Capri Holdings and its fashion brands, visit their official website here. For the latest news and updates from the fashion industry, check out FashionUnited here.
