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Michael Kors, Ltd. is Closing a Deal to Purchase Versace for over $2 Billion

By JaVonni Brustow / Published on Tuesday, 25 Sep 2018 12:54 PM / No Comments
Photo Credit: Getty Images; TheCut.com

Michael Kors is following close in the steps of rival luxury brand Gucci by rebranding itself as an accessories focused brand to gain a younger audience, just as Gucci has done and they’re hoping the aquisition of Versace will help them attain this goal. In a deal worth $2.12 billion, the 46.6% sales growth Gucci experienced in the first half of the year alone with over half of their customers being under 35 is the type of success Michael Kors is hoping they will get to capture for their own namesake. Sales have slowed for Michael Kors’ parent company and tacking on Versace as a luxury brand with the the planned expansion of 100 more Versace stores and increased online presence, this should be a win win scenario for both Michael Kors, Ltd. and Versace. After all, Michael Kors purchased Jimmy Choo and their profits have excelled in the first quarter of the year because of their leadership.

Let’s be honest here. There are definitely going to be naysayers. Many of Versace’s items can cost 5x that of Michael Kors. But for those concerned about this democratization of Versace should have nothing to worry about. Donatella Versace is going to stay on as creative director. She’s certainly not worried given the $177 million worth of shares she and other family members are getting in the newly formed parent company Capri Holdings. As it stands now, Michael Kors, Ltd has under $5 billion in revenue as opposed to the over $40 billion revenue Louis Vuitton’s parent company of LVMH has so there is definitely some catching up to do but not impossible.

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Glitzers, do you support Michael Kors purchasing Versace?

About JaVonni Brustow

Urban Conservative, Principal at VM3 Media, Co-Editor-in-Chief of PopGlitz.com and MogulPundit.com, Javonni Brustow is a Communications and Media Consultant in Washington, DC with a decade of experience as a seasoned concert producer, marketing expert and brand management expert with multiple news publications. He can be heard LIVE Sundays at 3pm on Popglitz Radio and is a regular on the 'Did She Say That' Breitbart Radio Show with Sonnie Johnson. Inquiries: javonni@VM3Media.com