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Capri Holdings looks to expand luxury portfolio as Versace beats sales expectations

By Don-Alvin Adegeest

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Business

Image: Versace

At the Morgan Stanley Virtual Global Consumer & Retail Conference on Thursday, Versace parent Capri Holdings said the Italian luxury house is on track to surpass 1 billion dollars in sales this year.

Capri Holdings’ chief executive John Idol said “It just doesn’t happen in a year or two years. It takes five and it takes 10 years. So we’re a few years into that investment, and it’s going extremely well. And we’re committed to luxury. That is what that brand will stand for.” Versace’s annual earnings were 800,000 dollars at the time of sale but dropped to 650,000 million as part of its turnaround strategy to focus on luxury.

Idol also confirmed the American fashion group is looking to expand its portfolio. “We’re going to be disciplined, we believe that we will continue to focus only on the luxury area, which predominantly means, and I would almost say exclusively means, European luxury companies that really have the ability to be at minimum 1 billion dollars because it’s not really worth our time, energy and effort to do something that will only be hundreds of millions of dollars, even though it’s a very sizable business. It takes kind of the synergy and effort to put that into a few hundred million as it does 1 billion dollar-plus business.

“So we’re active, we are actively looking now. We’re actually even involved in select conversations, nothing is on the horizon, but we are active.”

Article source: Yahoo News
Capri Holdings
Versace