Versace's parent company is expecting growth again

Capri Holdings (the parent company of Michael Kors, Versace and Jimmy Choo) expects another sharp growth in the coming year, as demand for luxury fashion rapidly recovers in the United States.

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Michael Kors is the only one of the three fashion labels that had to cope with a 4 per cent drop in turnover in the past quarter. Versace and Jimmy Choo saw their turnover increase by 10 and 16 per cent, respectively. In terms of turnover, however, Versace is by far the most important label of the group. CEO John Idol wants to give the brand a more exclusive look by limiting the offer and allowing fewer promotions. That should make the fashion house a “smaller but more profitable business”.

Capri’s total sales remained virtually flat during the fourth quarter at 1.2 billion dollars (just under a billion euros). It exceeded analysts’ expectations, writes StreetInsider. For the full year, which ended on 27 March, sales dropped by almost 27 per cent to 4.1 billion dollars (3.7 billion euros).

Now that vaccinations in the United States are proceeding swiftly, Capri expects a strong recovery for the current year. The company anticipates total sales in 2022 to be approximately 5.1 billion dollars (4.2 billion euros).