Case Study: Michael Kors.

Updated: Nov 19, 2019

Let’s raise a glass to Michael Kors and Versace on their new partnership. Days ago, it was announced that Kors, under his new fashion holding company Capri Holdings, acquired Versace for $2B — which happens to be more than twice what Versace is currently worth. So why would MK do it? Our two (billion) cents on the matter, he grabbed up Versace for BRAND POWER. Despite Versace being one of the lesser respected luxury brands, it’s a luxury brand nonetheless and Capri Holdings is clearly on a mission.

Combine an approachable yet flashy everyday brand that’s focused on handbags and shoes (Michael Kors) with a flashy luxury brand (Versace) who’s strength is in clothing and you’ve got a powerhouse in the making. Did we mention that Jimmy Choo is also a part of this family? Say whaa? Yup. Late 2017, Kors acquired Choo for $1B. Can we pause and applaud, please?! Michael Kors took his company public in 2011, became a billionaire in 2014, acquired Jimmy Choo in 2017 and Versace in 2019! I don’t know what you’re thinking, but we’re damn proud and a little giddy to see where this goes.

The vision is simple: BUILD THE BRAND. It’s clear that his brand has expanded from a standalone name into a true fashion house with multiple recognizable brands. We’re not saying he’s reached LVMH status, that will take time and strategy. Now that he has two luxury and an everyday name, we’re curious to see what he sets out to acquire next. We’d like to cast a vote for BeBe. It’s an underappreciated brand with a loyal following that would help round out Capri Holdings. One thing we can say for sure is that we are now in an era of fashion power house building which could be an opportunity for the right brand to come in and take the industry by storm.

We’ll follow up on this in the months to come.