Capri Holdings

Last updated

Capri Holdings Limited
FormerlyMichael Kors Holdings Limited
Company type Public
ISIN VGG1890L1076
Industry Fashion
Founded1981;43 years ago (1981)
Founder Michael Kors
Headquarters
Executive offices: London; [1] Operations offices: New York
Area served
Worldwide
Key people
Products
  • Apparel
  • handbags
  • footwear
  • watches
  • accessories
RevenueDecrease2.svgUS$5.62 billion (2023)
Increase2.svgUS$3.05 billion (2023)
Decrease2.svgUS$619 million (2023)
Total assets Decrease2.svgUS$7.3 billion (2023)
Total equity Decrease2.svgUS$1.85 billion (2023)
Number of employees
15,500 (2023)
Subsidiaries
Website capriholdings.com
A Michael Kors retail store in Rehoboth Beach, Delaware A Michael Kors retail store in Rehoboth Beach, Delaware.jpg
A Michael Kors retail store in Rehoboth Beach, Delaware

Capri Holdings Limited (formerly Michael Kors Holdings Limited) is a multinational fashion holding company, incorporated in the British Virgin Islands, [2] with executive offices in London [2] and operational offices in New York. It was founded in 1981 by American designer Michael Kors. [3] The company sells clothes, shoes, watches, handbags, and other accessories. In 2015, the company had more than 550 stores and over 1,500 in-store boutiques in various countries. [4] [5]

Contents

Capri is the parent company of Kors' eponymous brand, as well as Versace and Jimmy Choo. Capri is presently undergoing an acquisition by Tapestry, owner of Coach New York and Kate Spade, which if approved by regulators, would buy Capri for $8.5 billion. [6] [7]

Background

Founder Michael Kors enrolled at the Fashion Institute of Technology in New York City in 1977, but dropped out after nine months. [8] Taking a job as a sales person at a boutique called Lothar's across from Bergdorf Goodman on 57th Street in Midtown Manhattan, he later became both the designer and visual display head for the store.

History

A Michael Kors handbag Mk bag.jpg
A Michael Kors handbag

Noticing the displays and garments, Bergdorf's fashion director Dawn Mello asked if he would show his collection to Bergdorf Goodman's buyers. [9] In 1981, Kors launched his Michael Kors women's label at Bergdorf Goodman. In 1990, the company launched KORS Michael Kors as a licensee.

In 1993, the company was forced into a Chapter 11 filing, caused by the closure of the licensing partner for KORS Michael Kors. Putting the KORS line on hold, he designed for other labels before relaunching in 1997 with a lower-priced line, and in the same year was named the first women's ready-to-wear designer for French house Celine. [10]

In 2002, Kors launched his menswear line. Kors left Celine in October 2003 to concentrate on his own brand via holding company Michael Kors Holdings Limited (MKH Ltd), relaunched with a majority $100 million investment from Canadian fashion investor Lawrence Stroll and his Hong Kong-based partner Silas Chou, who had previously purchased Tommy Hilfiger in 1989. [11] [12] John D. Idol was subsequently appointed CEO of the company, with a shareholding interest. The MICHAEL Michael Kors line was launched in 2004, which included women's handbags and shoes as well as women's ready-to-wear apparel.

In 2011, Stroll and Chou led an initial public offering in MKH Ltd on to the New York Stock Exchange, making them and Michael Kors billionaires. [13] In June 2018, Chou sold the last of his investment in Kors. [12]

Tapestry, Inc. agreed to acquire Capri for $8.5 billion in August 2023. In April 2024, the U.S. Federal Trade Commission sued to block the acquisition citing reduced competition between their brands, like Coach and Michael Kors, in the affordable luxury handbag market. It was also concerned that the deal would negatively hiring of workers and their wages. Responding to the suit, Tapestry and Capri said they would fight it in court with the aim of closing the transaction by the end of 2024. [14] [15]

Operations

A Michael Kors purse shop Michael kors purseshop.jpg
A Michael Kors purse shop

By 2014, the annual revenue for the company was $3.2 billion, with a net income of $670 million. [16] By April 2017, the company had 827 full-price or outlet stores and 133 licensed stores. [17] Since 2017, the company said that it would no longer use animal fur in any of its products. [18] In 2018, Michael Kors announced two new stores, one in Waterloo, New York, [19] as well as one in the Fairview Park Mall in Kitchener, Ontario.

Purchases: Jimmy Choo, Versace

In July 2017, MKH Ltd bought Jimmy Choo Ltd for £897 million. [20] In September 2018, MKH Ltd announced a deal to take over Versace. The Italian fashion group was valued at $2.1 billion. [21] Capri Holdings has planned to up Versace's global retail footprint from approximately 200 to 300 stores. [22] On January 2, 2019 after closing the deal, the company was renamed to Capri Holdings. [23] [24]

Trademark protection

In Canada, there had been multiple counterfeit Michael Kors bags, wallets, and other items in Montreal, Quebec. In an attempt to end the counterfeit production and to enforce trademark rights, the brand commenced actions against a major network of counterfeit suppliers and vendors, and raided multiple locations throughout the Greater Montreal Area in 2015. [25]

Related Research Articles

Luxottica Group S.p.A. is an Italian eyewear conglomerate based in Milan. As a vertically integrated company, Luxottica designs, manufactures, distributes, and retails its eyewear brands all through its own subsidiaries. The company, presently organized as a subsidiary of EssilorLuxottica which formed when the Italian conglomerate merged with the French optical firm Essilor, is the world's largest company in its industry, both prior to and after its merger with Essilor.

<span class="mw-page-title-main">Versace</span> Italian luxury fashion house in Milan

Gianni Versace S.r.l., usually referred to as Versace, is an Italian luxury fashion company founded by Gianni Versace in 1978. The company produces Italian-made ready-to-wear and accessories, as well as haute couture under its Atelier Versace brand and licenses its name and branding to Luxottica for eyewear. Gianni Versace being a native of Calabria, in the ancient Magna Grecia, the company logo is inspired by Medusa, a figure from Greek mythology.

<span class="mw-page-title-main">Louis Vuitton</span> French international fashion house

Louis Vuitton Malletier, commonly known as Louis Vuitton, is a French luxury fashion house and company founded in 1854 by Louis Vuitton. The label's LV monogram appears on most of its products, ranging from luxury bags and leather goods to ready-to-wear, shoes, perfumes, watches, jewellery, accessories, sunglasses and books. Louis Vuitton is one of the world's leading international fashion houses. It sells its products through standalone boutiques, lease departments in high-end departmental stores, and through the e-commerce section of its website.

<span class="mw-page-title-main">Tapestry, Inc.</span> American Fashion Holding Company

Tapestry, Inc. is an American multinational luxury fashion holding company. It is based in New York City and is the parent company of three major brands: Coach New York, Kate Spade New York and Stuart Weitzman. Originally named Coach, Inc., the business changed its name to Tapestry on October 31, 2017.

<span class="mw-page-title-main">Tamara Mellon</span> British fashion entrepreneur (born 1967)

Tamara Mellon is a British fashion entrepreneur who co-founded the luxury footwear brand Jimmy Choo. Subsequently, Mellon founded her namesake luxury footwear brand, Tamara Mellon, with co-founder and CEO Jill Layfield and CDO Tania Spinelli in 2016.

Sandra Choi is a British-Chinese businesswoman and fashion designer. She is the creative director of J. Choo Limited. She is the niece of Jimmy Choo's wife, Rebecca.

<span class="mw-page-title-main">Michael Kors</span> American fashion designer (born 1959)

Michael David Kors is an American fashion designer. He is the chief creative officer of his brand, Michael Kors, which sells men's and women's ready-to-wear, accessories, watches, jewelry, footwear, and fragrance. Kors was the first women's ready-to-wear designer for the French house Celine, from 1997 to 2003. On January 2, 2019, Michael Kors Holdings Limited officially changed its name to Capri Holdings Limited. Michael Kors, Jimmy Choo, and Versace are the three founder-led brands under Capri Holdings Limited.

Jimmy Choo is a British luxury fashion house specialising in shoes, handbags, accessories and fragrances. The company, J. Choo Limited, was founded in 1996 by Malaysian Chinese couture shoe designer Jimmy Choo and British Vogue accessories editor Tamara Mellon. The brand claims to have been a favourite of Diana, Princess of Wales. The company was listed on the London Stock Exchange until it was acquired in November 2017 by Michael Kors Holdings, now Capri Holdings.

<span class="mw-page-title-main">Designer clothing</span> Expensive luxury clothing

Designer clothing is clothing designed by a particular fashion designer or licensed by a person or brand. It is often luxury clothing proven to be high quality and haute couture for the general public, made by, or carrying the label of, a well-known designer. Licensing of designer names has been a common practice within the fashion industry since about the 1970s. Designer clothing comprises numerous types of apparel, including designer jeans that often cost several hundreds of dollars.

<span class="mw-page-title-main">Designer label</span> Products sold under a marque named after a designer

The term designer label refers to clothing, luxury automobile manufacturers and other personal accessory items sold under an often prestigious marque which is commonly named after a designer, founder, or a location-like where the company was founded. The term is most often applied to luxury goods. While members of the upper middle class, or the mass affluent, are perhaps the most commonly targeted customers of these designer labels, some marquees—such as Cartier, Rolex, Montblanc and the haute couture — tend to a wealthier customer base. But almost every designer brand has merchandise that the middle-class wouldn't normally be able to afford, such as exotic skins, furs and hides, limited edition pieces, or things simply priced higher. Designer label companies use their smaller and cheaper merchandise, aimed at the middle class, such as wallets, fashion jewellery, key-rings and small accessories, to make the majority of their income, whilst the more expensive pieces such as haute couture, high jewellery, hand-bags, shoes and even furnishings are usually reserved for the wealthier upper-class clientele.

<span class="mw-page-title-main">Anya Hindmarch</span> English fashion accessories designer (born 1968)

Anya Susannah Hindmarch, is an English fashion accessories designer who founded an eponymous company, of which she is currently CEO. Hindmarch published her first book, If In Doubt Wash Your Hair in May 2021, a Sunday Times bestseller.

<span class="mw-page-title-main">Celine (brand)</span> French fashion brand

Celine is a French luxury fashion house founded in 1945 by designer Céline Vipiana. The headquarters are located at 16 rue Vivienne in the 2nd arrondissement of Paris at the Hôtel Colbert de Torcy, which has French Historic Monument classification.

<span class="mw-page-title-main">Neiman Marcus</span> American luxury department store chain

Neiman Marcus Group, Inc. is an American integrated luxury retailer headquartered in Dallas, Texas, which owns Neiman Marcus, Bergdorf Goodman, Horchow, and Last Call. Since September 2021, Neiman Marcus Group has been owned by a group of investment companies led by Davidson Kempner Capital Management, Sixth Street Partners and Pacific Investment Management.

Versus (Versace) was a diffusion line of the Italian luxury fashion house Versace. It was founded in 1989 by Gianni Versace as a gift to his sister Donatella. The line was discontinued in 2005 but was relaunched by Donatella in 2009 with a capsule collection of accessories designed by British designer Christopher Kane.

<span class="mw-page-title-main">Kate Spade New York</span> American fashion design house

Kate Spade New York is an American luxury fashion house founded in January 1993 by Kate and Andy Spade. In 2017, the company was purchased by Tapestry, Inc., formerly known as Coach, Inc.

Dawn Mello was an American fashion retail executive and consultant and the one-time fashion director and president of Bergdorf Goodman. Subsequently she moved to Italy to manage Gucci. Later she was the president of her own firm, Dawn Mello & Associates LLC.

<span class="mw-page-title-main">Ira Neimark</span>

Ira Neimark was an American author, lecturer, and retail executive who served as Chairman and CEO of Bergdorf Goodman from 1975 to 1992. His reintroduction of French haute couture to New York with Yves Saint Laurent, Hubert de Givenchy, and Christian Dior sparked a period of growth for Bergdorf Goodman, which went from $18 million in sales in 1975 to $250 million in sales by 1992. During his tenure, he expanded the women's store and in 1991, he opened the Bergdorf Goodman Men's Store across the street from the primary location in New York.

<span class="mw-page-title-main">Coach New York</span> American fashion house

Coach New York, commonly known as Coach, is an American luxury fashion house specializing in leather handbags, luggage, and accessories, as well as ready-to-wear. Coach licenses its name and branding to Luxottica for eyewear and Paris-based Interparfums for fragrances. Stuart Vevers has been the executive creative director since June of 2013.

Silas K. F. Chou is a Hong Kong billionaire, active in the fashion sector.

EssilorLuxottica SA is an Italian-French vertically integrated multinational corporation based in Paris and founded on 1 October 2018 from the merger of the Italian Luxottica with the French Essilor. The eyewear-focused group designs, produces and markets ophthalmic lenses, optical equipment, prescription glasses and sunglasses.

References

  1. "Capri Holdings Investor FAQs" . Retrieved June 7, 2020.
  2. 1 2 "Capri Holdings Limited - Overview". www.capriholdings.com.
  3. "Shares of Michael Kors as Hot as Its Wares". The New York Times . February 14, 2012. Retrieved January 4, 2015.
  4. "Michael Kors plans rapid expansion with 45 more North American stores". FierceRetail. Retrieved January 4, 2015.
  5. "Michael Kors Dubai". malloftheemirates.com. Archived from the original on February 13, 2014. Retrieved June 1, 2016.
  6. Fonrouge, Melissa Repko,Gabrielle (August 10, 2023). "Coach owner Tapestry to acquire Michael Kors, Jimmy Choo parent Capri Holdings for $8.5 billion". CNBC. Retrieved August 10, 2023.{{cite web}}: CS1 maint: multiple names: authors list (link)
  7. Venugopal, Aishwarya (August 10, 2023). "Coach owner's Michael Kors deal creates US giant to take on European luxury rivals". Reuters. Retrieved August 10, 2023.
  8. Infomat Michael Kors Biography Archived January 14, 2010, at the Wayback Machine , Infomat.com, September 10, 2009
  9. "Michael Kors: Retail's next billion-dollar man". cnn.com.
  10. The Michael Kors Story Archived July 29, 2017, at the Wayback Machine , December 11, 2012
  11. "Silas Chouis One of the 500 People Shaping the Global Fashion Industry". businessoffashion.com. Retrieved September 26, 2018.
  12. 1 2 "How tycoon Silas Chou made a fortune from two global brands". ejinsight.com. November 8, 2016. Retrieved September 26, 2018.
  13. "Michael Kors Is Fashion's Newest Billionaire". Forbes. January 2014.
  14. D'Innocenzio, Anne (April 23, 2024). "Federal Trade Commission sues to block Tapestry's $8.5B acquisition of Capri". Associated Press.
  15. Repko, Melissa (April 22, 2024). "FTC sues to block Coach parent Tapestry's acquisition of Capri Holdings". CNBC. Retrieved April 23, 2024.
  16. "Form 10-K". www.sec.gov. Retrieved May 2, 2015.
  17. "Michael Kors to close up to 125 stores as luxury retail woes deepen". USA Today. Retrieved September 18, 2017.
  18. "Michael Kors Holdings Limited Adopts Fur-Free Policy," Michael Kors Holdings news release, 15 December 2017.
  19. "Michael Kors to open in Waterloo". Rochester Democrat and Chronicle. Retrieved March 30, 2018.
  20. BBC News (July 25, 2017). "Jimmy Choo bought by Michael Kors in £896m deal". BBC.co.uk. Retrieved July 25, 2017.
  21. Dalton, Matthew; Kapner, Suzanne (September 24, 2018). "Michael Kors Woos Versace in Push for Foothold in High Fashion". The Wall Street Journal. ISSN   0099-9660 . Retrieved September 25, 2018.
  22. Newbold, Alice (January 2, 2019). "Michael Kors Holdings Ltd Begins 2019 As Capri Holdings". British Vogue. Retrieved May 19, 2020.
  23. "Versace fashion house bought by Michael Kors for $2.1bn to make super group". Sky News. Retrieved September 25, 2018.
  24. "Michael Kors Holdings Limited to Be Renamed Capri Holdings Limited". investors.michaelkors.com. Retrieved September 25, 2018.
  25. "Luxury brand Michael Kors strikes back at Quebec counterfeiters". The Globe and Mail. April 23, 2015. Retrieved May 2, 2015.