Versace Is One of Capri Holdings’ Best Assets, CEO John Idol Says

Capri Holdings Ltd. at Goldman Sachs’ Annual Global Retailing Conference Thursday — and he touted Versace as one of the company’s best assets. ” data-reactid=”19″>John D. Idol spoke about the strength of Capri Holdings Ltd. at Goldman Sachs’ Annual Global Retailing Conference Thursday — and he touted Versace as one of the company’s best assets. 

Versace is comping up right now, which is extraordinary considering what’s happening around the world right now,” Idol, Capri’s chairman and chief executive officer, said during the virtual conference. “We have a company, a brand and a luxury house, led by one of its original founders, Donatella [Versace], that has such an important message and voice in the fashion business, that we’ll be able to accelerate that, really with a laser focus. And we’re on a mission that really the pandemic is not going to change what we’re doing. We’re going to renovate every one of our stores around the globe; we’re going to focus on the accessories business where this company is very under-penetrated versus its other luxury peers. And we are going to really make sure that we are one of the competitors in the luxury space.”” data-reactid=”20″>“Versace is comping up right now, which is extraordinary considering what’s happening around the world right now,” Idol, Capri’s chairman and chief executive officer, said during the virtual conference. “We have a company, a brand and a luxury house, led by one of its original founders, Donatella [Versace], that has such an important message and voice in the fashion business, that we’ll be able to accelerate that, really with a laser focus. And we’re on a mission that really the pandemic is not going to change what we’re doing. We’re going to renovate every one of our stores around the globe; we’re going to focus on the accessories business where this company is very under-penetrated versus its other luxury peers. And we are going to really make sure that we are one of the competitors in the luxury space.”

Michael Kors and Jimmy Choo brands in the greater portfolio — that lost a combined $731 million in the last two quarters thanks to the coronavirus shutdown around the world. Company shares, which closed up 11.14 percent Thursday to $19.96 a piece, are down nearly 38 percent year-over-year. ” data-reactid=”28″>That’s good news for the group — which also includes the Michael Kors and Jimmy Choo brands in the greater portfolio — that lost a combined $731 million in the last two quarters thanks to the coronavirus shutdown around the world. Company shares, which closed up 11.14 percent Thursday to $19.96 a piece, are down nearly 38 percent year-over-year. 

accessories and footwear businesses to about 60 percent of overall revenues and growing the digital business. ” data-reactid=”29″>But even pre-pandemic, Idol said the company had plans to grow Versace to $2 billion in annual revenues. To do that, Capri is continuing with its plans to open roughly 300 Versace stores around the world in the next few years, while renovating others, expanding Versace’s accessories and footwear businesses to about 60 percent of overall revenues and growing the digital business. 

e-commerce business — I think we have something that is quite extraordinary,” he said.” data-reactid=”33″>“With Donatella’s voice and the power of our distribution — again, we sit in the best locations, the best streets and with an enhanced global e-commerce business — I think we have something that is quite extraordinary,” he said.

sneakers and the Michael Kors watch business.” data-reactid=”34″>Across the entire portfolio, accessories continue to be the best-performing category, Idol said. Other bright spots include the growing Chinese business, luxury sneakers and the Michael Kors watch business.

apparel and the near demise of tourism retail — at least for now. ” data-reactid=”36″>Even so, Capri has plenty of headwinds to navigate in the near term. Namely the Michael Kors brand, the company’s largest (which lost $48 million last quarter and is comping down in the midteens quarter-to-date), women’s ready-to-wear apparel and the near demise of tourism retail — at least for now. 

travel–retail business, where most of the airports and [the] traveling consumer has not returned to what it was prior to the pandemic,” Idol said. “There’s probably a minimum 18-month to 24-month recovery for people to feel comfortable getting on airplanes, doing extensive traveling around the world. And that will impact our business, especially in major cities.”” data-reactid=”37″>“The place that is the most traffic-challenged is clearly our travel–retail business, where most of the airports and [the] traveling consumer has not returned to what it was prior to the pandemic,” Idol said. “There’s probably a minimum 18-month to 24-month recovery for people to feel comfortable getting on airplanes, doing extensive traveling around the world. And that will impact our business, especially in major cities.”

Europe, which Idol said is also the weakest-performing market to date.  ” data-reactid=”38″>The loss in tourism is perhaps most pronounced in Europe, which Idol said is also the weakest-performing market to date.  

And we’ve had relationships with them. I think we’re trying to deepen those relationships. And I’ve talked on previous presentations that we really think that engaging with the customer, whether it’s through Zoom calls like this, or whether sending clothes to the house, creating more bespoke shopping experiences is going to be equally as important as we’re all talking about online and digital and e-commerce. There’s still a very much a one-to-one relationship that exists between a sales associate and the consumer. And we’re going to really put a lot of time and effort behind that as a way of mitigating some of what we don’t see with the consumer by travel.”” data-reactid=”39″>“It’s going to be a considerable amount of time until that heals,” Idol said. “So in the meantime, we’ll obviously focus on local markets. While we’re not getting tourists into North America, a lot of people, who were [previously] traveling outside of North America, aren’t doing that, so they’re spending their money here. So, we’re definitely focused more on the local consumer in the individual markets. And we’ve had relationships with them. I think we’re trying to deepen those relationships. And I’ve talked on previous presentations that we really think that engaging with the customer, whether it’s through Zoom calls like this, or whether sending clothes to the house, creating more bespoke shopping experiences is going to be equally as important as we’re all talking about online and digital and e-commerce. There’s still a very much a one-to-one relationship that exists between a sales associate and the consumer. And we’re going to really put a lot of time and effort behind that as a way of mitigating some of what we don’t see with the consumer by travel.”