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Versace sold!

To be America's first-ever luxury conglomerate, Michael Kors Holdings, now renamed Capri Holdings, has acquired the world-famous Italian fashion house Versace for $2.1 Billion!

Michael Kors ( Capri Holding ) is in the process of buying Italian fashion house Versace for a value of approximately $2.12 billion, including debt, the company announced on Tuesday. That's 2.5 times the brand's current revenue. The primarily cash deal is expected to close in the fourth quarter of 2019.

In a presentation released to investors, Capri Holdings, outlined its plans for Versace, including increasing its global retail footprint from 200 stores to 300, building out e-commerce and expanding men's and women's accessories and footwear.

Under the new organisation, John D Idol will remain chairman and chief executive of Capri Holdings and also chief executive of the Michael Kors brand. Versace chief executive Jonathan Akeroyd will continue on, as will creative director Donatella Versace.

“This is a very exciting moment for Versace,” she said in a statement, adding that her brother Santo and daughter Allegra's stake in Capri "demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group."

“I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves," she said. "Santo, Allegra and I recognise that this next step will allow Versace to reach its full potential."

This will position the accessible the conglomerate, which acquired high-end shoemaker Jimmy Choo in July 2017 for $1.2 billion, to take a bigger slice of the high-end luxury market.

Versace is a world-famous name part of popular culture, but has been struggling to grow its business of similar scale for years. With the brand running losses from the late 1990s to 2011, the family sold a 20 percent stake to Blackstone in 2014 — a deal that valued the fashion house at $1.4 billion.


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Major Changes at the top at Lanvin

Lanvin has let go of artistic director Olivier Lapidus, less than a year after his initial appointment. The remaining in-house design team will be responsible for the women's collection until a replacement is found. The struggling brand has announced additional leadership changes: Joann Cheng, president of Fosun Fashion Group and chairman of the Lanvin board of directors, will become the interim chief executive of the house. Nicolas Druz, who has served as Lanvin general manager since 2017, will take up the new position of managing director of Fosun Fashion Group to "support the group's current and future business expansion in Europe." Ms Cheng continued "We sincerely thank Mr Druz and Mr Lapidus for their contributions to Lanvin's glorious heritage". "In seeking candidates for the permanent positions of CEO and artistic director, we want to ensure we find people who share the spirit of Lanvin. The re-launch of Lanvin with fresh talents, while adhering to the values that the brand has maintained since 1889, is fundamental to returning the maison to its rightful position at the top table of the world's most lauded and innovative fashion houses."

CK closing its Ready-To-Wear Business

Calvin Klein is closing down its luxury collection business, closing its offices in Milan and making staff redundant in New York, according to a source. Michelle Kessler-Sanders, the president of the 205W39NYC ready-to-wear business, will leave the company in June 2019. Overall, about 100 people, or 1 percent of PVH's global workforce, will be affected.

After Calvin Klein parted ways with chief creative officer Raf Simons at the end of 2018, they said it was rethinking its approach to the luxury market, on a strategy that would “[offer] an unexpected mix of influences and moving at an accelerated pace."

In January, it was announced that the brand would close its 654 Madison Avenue flagship store, which Simons renovated in 2017, in addition to other changes, some of which came to fruition very soon.

The brand’s sales come from their underwear and denim lines, much of which is produced by third-party licensing partners. But chief executive Steve Shiffman still plans to develop what the source called "aspirational" products. The search for a new design director to lead that effort continues, but it's presumed that the designer won’t be as high profile as Simons.

What Fashion Calendar?

Fashion week is NO MORE! thats according to Gucci.

In a virtual press conference, the label’s creative director, Alessandro Michele, announced that Gucci was slashing the number of fashion shows it holds each year from five to two. Declaring the fashion week calendar obsolete, Michele said he was no longer adhering to a rota staked out by spring/summer, autumn/winter, cruise and pre-fall shows. “I think these are stale and underfed words … clothes should have a longer life than that which these words attribute to them,” he said. Instead, the brand will show “seasonless” collections twice a year. There are no plans for a show in September, when the Gucci collection would normally be staged as a key part of Milan fashion week.

All fashion shows have stopped in its tracks due to Covid-19, with mens-wear and haute couture shows scheduled for June and July cancelled, and the September fashion weeks in doubt. A question mark hangs over not just when – but whether – any of the events will ever come back.

“Above all, we understand we went way too far,” Michele writes on Instagram. “Our reckless actions have burned the house we live in. We conceived of ourselves as separated from nature, we felt cunning and almighty.”

Michele, who has a passion for flowery maximalism that encompasses his prose as well as his clothes, added: “We usurped nature, we dominated and wounded it. We incited Prometheus, and buried Pan."

“So much haughtiness made us lose our sisterhood with the butterflies, the flowers, the trees and the roots. So much outrageous greed made us lose the harmony and the care, the connection and the belonging.”

As the mightiest brand to come out in support of a move to a leaner, less wasteful fashion system, this announcement is significant.

Discussions on the topic of sustainability has been ongoing in the industry for the past month, but the big brands have until now been mostly silent.

The biggest labels, which have profited the most from the system as it stands and have the necessary financial cushion to ride out the incoming economic crisis, have been less motivated to radical change than smaller brands. By throwing their weight behind the forces of change, Gucci has the ability to shift the balance of power in this conversation.

Last month, Saint Laurent announced it would sit out Paris fashion week this September and set its own schedule going forward, a decision made in amid “waves of radical change”.

The brand will “lead its own rhythm … [and] take ownership of its calendar”. Saint Laurent’s opt-out was notable because its catwalk shows, held on the Friday evening of each Paris fashion week on a huge open-air catwalk directly beneath the Eiffel Tower, have become a red-letter date in the French fashion calendar, drawing a supermodel cast, a celebrity front row and large crowds who watch from behind barriers. The absence of a marquee name central to the notion of Parisian chic is a blow to Paris fashion week’s status as the heart of French fashion.

Gucci’s revenue for 2019 was €9.6bn (£8.6bn), dwarfing its Kering stablemate Saint Laurent, which recorded revenue of €2bn for the same period. As the largest and most profitable brand in the Kering luxury group, which also owns Saint Laurent and Bottega Veneta, Gucci exerts influence across the industry.

Gucci’s influence is not merely economic. Since taking over five years ago, Michele has positioned himself at the progressive edge of fashion’s engagement with culture.

On the catwalk, his male models wear pussy-bow silk blouses and babydoll dresses. He has dressed the pop star Harry Styles in pearl earrings on stage and the actor Jared Leto in a floor-length evening gown on the Met Gala red carpet.

His embrace of gender fluidity has revolutionised the traditional codes of menswear embedded in Italian fashion, and shifted the mainstream away from what he has called “an aesthetic of toxic masculinity”.

Overhaul of the fashion week system and its heavy carbon footprint has been mooted for years, but in 2020 change is becoming an economic necessity. Kering and LVMH, the two largest luxury groups, recorded a drop in revenue of about 15% for the first three months of this year.

Jean-Marc Duplaix, Kering’s chief financial officer, told Womenswear Daily last month that the group was planning “drastic” cost reductions at brand level as it braced for ongoing poor results.

In recent years, Gucci has staged blockbuster shows at Westminster Abbey in London and at the Capitoline Museum in Rome, in addition to events during fashion week. The latest cruise collection had been scheduled for an unveiling in San Francisco last week, until the pandemic forced cancellation.

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