In September 2018, Michael Kors Holdings acquired Versace for $2.1 billion, creating a luxury powerhouse with soaring revenues. However, in 2025, Capri Holdings, the renamed company, faced a $1.18 billion loss and declining revenues, leading to the sale of Versace to Prada for $1.375 billion. Capri struggled against a shrinking luxury market and competition from Tapestry, particularly Coach. Despite attempts to stabilize leadership with Joshua Schulman and Cedric Wilmotte, both CEOs departed, leaving Capri in a precarious position. With only two new board members in five years, Capri’s future remains uncertain, led by long-time CEO John D. Idol. After an FTC lawsuit, emails reveal Coach CEO scrutinizing marketing strategies and lamenting rival’s success. Capri, struggling since failed merger with Tapestry, faces challenges in luxury market contraction. Brands like Versace, Michael Kors, and Jimmy Choo see revenue declines and impairments. Capri sells Versace to Prada to stabilize business and reduce debt. Tapestry’s Coach thrives post-merger fallout, while Capri faces missteps in brand repositioning under CEO Idol’s leadership. Consumer alienation leads to price hikes and subsequent decreases for Michael Kors products. Michael Kors CEO John Idol admitted that a higher pricing strategy backfired when customers didn’t respond well. This led to dropping prices and negative brand perception. Capri Holdings, which owns Michael Kors and Jimmy Choo, is now focusing on rebranding and new collections to boost sales. The company plans to revamp stores, launch marketing campaigns, and target $4 billion in revenue from Kors and $800 million from Jimmy Choo. Analysts are cautiously optimistic about Capri’s turnaround efforts, with the success of the luxury brand in question amidst a changing retail landscape.

Read more at 1. “Stock Market Reaches New Record Highs on Strong Economic Data.” – CNBC

2. “Unemployment Rate Drops to 4.8% as Job Market Continues to Improve.” – Reuters

3. “Tech Stocks Surge as Big Tech Companies Report Strong Earnings.” – Wall Street Journal

4. “Federal Reserve Announces Interest Rate Hike Amid Inflation Concerns.” – Barchart

5. “Oil Prices Soar to $80 a Barrel Due to Supply Chain Disruptions.” – CBS MarketWatch: Behind glam luxury brands Michael Kors and Jimmy Choo lurks a troubled holding company losing millions