Deals
How Michael Kors Plans to Make Versace a $2 Billion Brand
- Accessories, more stores, online push all part of new strategy
- CEO says brand ‘terribly underdeveloped,’ with changes ahead
Photographer: Victor J. Blue/Bloomberg
Michael Kors has an ambitious plan to turn Versace into a multibillion-dollar business. Can it make it work?
Kors, which is changing its corporate name to Capri Holdings Ltd., announced Tuesday that it would buy Gianni Versace SpA for about $2.2 billion. It outlined a plan to more than double the high-end brand’s sales by opening about 100 new stores, investing in e-commerce and selling more accessories and footwear under the Versace label. It’s also looking to expand in Asia, eyeing markets including Japan and South Korea.