Capri Holdings Announces Termination of Merger With Tapestry
Capri Holdings (NYSE:CPRI) announced the mutual termination of its merger agreement with Tapestry, Inc., as required U.S. regulatory approvals were unlikely to be met by February 10, 2025. The company unveiled strategic initiatives focused on returning to growth across its three luxury houses: Versace, Jimmy Choo, and Michael Kors. The strategy includes enhancing brand desirability, product development, and omni-channel experience. Michael Kors plans to reduce its store fleet to approximately 650 locations, while Versace and Jimmy Choo will maintain their current store counts at around 230 and 220 stores respectively. The company will host an Investor Day in late February 2025 to provide detailed financial prospects.
Capri Holdings (NYSE:CPRI) ha annunciato la risoluzione consensuale del suo accordo di fusione con Tapestry, Inc., poiché non era probabile che le approvazioni normative statunitensi richieste venissero ottenute entro il 10 febbraio 2025. L'azienda ha presentato iniziative strategiche focalizzate sul ritorno alla crescita attraverso le sue tre case di lusso: Versace, Jimmy Choo e Michael Kors. La strategia include il miglioramento del desiderio del marchio, lo sviluppo dei prodotti e l'esperienza omni-canale. Michael Kors prevede di ridurre il proprio parco negozi a circa 650 località, mentre Versace e Jimmy Choo manterranno il loro attuale numero di negozi, rispettivamente intorno ai 230 e 220 negozi. L'azienda ospiterà una Giornata per gli Investitori alla fine di febbraio 2025 per fornire prospettive finanziarie dettagliate.
Capri Holdings (NYSE:CPRI) anunció la terminación mutua de su acuerdo de fusión con Tapestry, Inc., ya que era poco probable que se obtuvieran las aprobaciones regulatorias requeridas en EE. UU. para el 10 de febrero de 2025. La empresa presentó iniciativas estratégicas centradas en regresar al crecimiento a través de sus tres casas de lujo: Versace, Jimmy Choo y Michael Kors. La estrategia incluye mejorar el deseo de la marca, el desarrollo de productos y la experiencia omnicanal. Michael Kors planea reducir su flota de tiendas a aproximadamente 650 ubicaciones, mientras que Versace y Jimmy Choo mantendrán su número actual de tiendas alrededor de 230 y 220, respectivamente. La compañía organizará un Día del Inversor a finales de febrero de 2025 para ofrecer perspectivas financieras detalladas.
카프리 홀딩스(Capri Holdings, NYSE:CPRI)는 태피스트리(Tapestry, Inc.)와의 합병 계약이 상호 종료되었다고 발표했습니다. 이는 2025년 2월 10일까지 필요한 미국 규제 승인이 불가능할 것으로 예상되었기 때문입니다. 회사는 성장으로의 복귀에 초점을 맞춘 전략적 이니셔티브를 공개했습니다. 이 전략은 세 개의 럭셔리 브랜드인 베르사체(Versace), 지미 추(Jimmy Choo), 마이클 코어스(Michael Kors)를 포함합니다. 이 전략에는 브랜드 매력도 향상, 제품 개발 및 옴니채널 경험 개선이 포함됩니다. 마이클 코어스는 매장 수를 약 650개로 줄일 계획입니다. 반면 베르사체와 지미 추는 각각 약 230개와 220개의 매장을 유지할 예정입니다. 회사는 2025년 2월 말에 투자자 데이를 개최하여 상세한 재무 전망을 제공할 것입니다.
Capri Holdings (NYSE:CPRI) a annoncé la résiliation mutuelle de son accord de fusion avec Tapestry, Inc., car les approbations réglementaires américaines requises étaient peu susceptibles d'être obtenues d'ici le 10 février 2025. L'entreprise a dévoilé des initiatives stratégiques visant à retrouver la croissance à travers ses trois maisons de luxe : Versace, Jimmy Choo et Michael Kors. La stratégie inclut l'amélioration de l'attractivité de la marque, le développement de produits et l'expérience omnicanal. Michael Kors prévoit de réduire son parc de magasins à environ 650 points de vente, tandis que Versace et Jimmy Choo conserveront leur nombre actuel de magasins autour de 230 et 220 respectivement. L'entreprise organisera une Journée des Investisseurs fin février 2025 pour fournir des perspectives financières détaillées.
Capri Holdings (NYSE:CPRI) hat die einvernehmliche Beendigung seines Fusionsvertrags mit Tapestry, Inc. bekannt gegeben, da die erforderlichen regulatorischen Genehmigungen in den USA bis zum 10. Februar 2025 voraussichtlich nicht erteilt werden können. Das Unternehmen stellte strategische Initiativen vor, die darauf abzielen, in seinen drei Luxusmarken: Versace, Jimmy Choo und Michael Kors, wieder zu wachsen. Die Strategie umfasst die Steigerung der Markenattraktivität, Produktentwicklung und Omni-Channel-Erfahrungen. Michael Kors plant, seine Verkaufsflotte auf etwa 650 Standorte zu reduzieren, während Versace und Jimmy Choo ihre aktuellen Filialzahlen mit etwa 230 und 220 Geschäften respectively beibehalten werden. Das Unternehmen wird Ende Februar 2025 einen Investorentag veranstalten, um detaillierte Finanzprognosen zu geben.
- Strong distribution network with over 1,200 directly operated luxury retail locations globally
- Solid financial position to implement strategic initiatives
- Planned renovation of approximately 150 Michael Kors stores over two years
- Strategic store optimization plan to improve efficiency
- Failed merger with Tapestry due to regulatory hurdles
- Acknowledged underperformance over past 18 months requiring strategic intervention
- Planned reduction in Michael Kors store fleet indicating potential revenue impact
Insights
The termination of the
The focus on digital capabilities and e-commerce growth, combined with store fleet optimization, reflects an attempt to right-size operations and improve profitability. However, the absence of specific growth targets or financial projections until the February 2025 Investor Day creates near-term uncertainty. The strategy appears more focused on stabilization than aggressive growth, particularly evident in the wholesale strategy language of "stabilizing revenue" rather than expansion.
The strategic initiatives reveal significant operational challenges, particularly in the Michael Kors brand, which faces store closures and requires substantial renovation investment. The emphasis on "stabilizing" wholesale revenue across all brands indicates recent distribution challenges and potential market share losses. The plan to maintain flat store counts for Versace (~230 stores) and Jimmy Choo (~220 stores) while reducing Michael Kors locations suggests a rebalancing of the portfolio toward luxury positioning.
The focus on "strategic pricing review" and "higher full-price sell-throughs" for Michael Kors indicates margin pressure and excess inventory issues. The strategy to reengage with aspirational luxury consumers across brands points to potential market positioning challenges and lost customer segments that need to be recaptured.
Announces Strategic Initiatives to Return to Growth
Schedules Conference Call With Investors
https://www.capriholdings.com/StrategyPresentation
(Photo: Business Wire)
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “With the termination of the merger agreement, we are now focusing on the future of Capri and our three iconic luxury houses. Looking ahead, I remain confident in Capri’s long-term growth potential for numerous reasons. First, we have an incredible portfolio of luxury houses, each with their own rich heritage, exclusive DNA and strong consumer loyalty. Second, we have a solid distribution network to build upon. With over 1,200 directly operated luxury retail locations globally combined with our robust digital platform we have a strong framework for the future. Additionally, our extensive wholesale network serves as an important channel to reach consumers in areas where we do not have our own stores. Third, we have the management team, design talent and a global workforce of 15,000 employees to successfully execute our initiatives. Fourth, we have the financial strength to implement our strategies.”
Mr. Idol concluded, “Given our Company’s performance over the past 18 months, we have recently started to implement a number of strategic initiatives to return our luxury houses to growth. Across Versace, Jimmy Choo and Michael Kors, we are focused on brand desirability through exciting communication, compelling product and omni-channel consumer experience. While our strategies are tailored uniquely for each brand, our overarching goals are similar.”
Capri Strategy Update
-
Communication Strategy
- Engage and inspire both new and existing consumers
-
Product Strategy
- Create exciting fashion product that resonates with our consumers
-
Omni-channel Strategy
- Leverage digital capabilities to grow E-commerce
- Improve retail store sales densities
-
Wholesale Strategy
- Stabilize revenue by aligning product offering to better meet consumer preferences
-
Corporate Social Responsibility Strategy
- Build upon our corporate values with communities both internally and externally
Michael Kors Strategy Update
-
Communication Strategy
- Implement dynamic, new marketing plans that appeal to a broader consumer base
- Increase marketing investments
-
Product Strategy
- Focus on creating exciting fashion product with compelling value
- Rebuild core and Signature assortments
- Strategic pricing review across the assortment to drive higher full price sell-throughs
-
Omni-channel Strategy
- Leverage digital capabilities to grow E-commerce
- Improve retail store sales densities
- Anticipate the store fleet will be reduced to approximately 650 stores over time
- Renovate approximately 150 stores over the two years
-
Wholesale Strategy
- Stabilize revenue by aligning product offering to better meet consumer preferences
Versace Strategy Update
-
Communication Strategy
- Continue to leverage strong brand awareness to drive engagement
-
Product Strategy
- Inject more energy into the assortment to better balance fun and elegant
- Develop broader assortment to reengage with the aspirational luxury consumer
- Further develop accessories offering
-
Omni-channel Strategy
- Leverage digital capabilities to grow E-commerce
- Improve retail store sales densities
- Anticipate that store fleet will remain flat at approximately 230 stores
-
Wholesale Strategy
- Resume growth by aligning product offering to better meet consumer preferences
Jimmy Choo Strategy Update
-
Communication Strategy
- Continue to engage new and existing customers through effective campaigns and collaborations
-
Product Strategy
- Enhance assortment to appeal to aspirational luxury consumers
- Further develop accessories offering
- Expand casual footwear assortment
-
Omni-channel Strategy
- Leverage digital capabilities to grow E-commerce
- Improve retail store sales densities
- Anticipate that store fleet will remain flat at approximately 220 stores
-
Wholesale Strategy
- Stabilize revenue by aligning product offering to better meet consumer preferences
Conference Call Information
A conference call to discuss Capri Holdings strategic initiatives to return to growth is scheduled for today, November 14, 2024 at 11:00 a.m. ET. Those who wish to participate in the call may do so by dialing (877) 704-4453 or (201) 389-0920 for international callers, conference ID 13750220. A live webcast of the conference call will also be available on the Company’s website, www.capriholdings.com.
In addition, a replay of the call will be available shortly after the conclusion of the call and remain available until November 21, 2024. To access the telephone replay, listeners should dial (844) 512-2921 or (412) 317-6671 for international callers. The access code for the replay is 13750220. A replay of the webcast will also be available within two hours of the conclusion of the call.
Investor Day 2025
Capri Holdings intends to host an Investor Day in
About Capri Holdings Limited
Capri Holdings is a global fashion luxury group consisting of iconic, founder-led brands Versace, Jimmy Choo and Michael Kors. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Capri Holdings Limited is publicly listed on the New York Stock Exchange under the ticker CPRI.
Forward-Looking Statements
This press release contains statements which are, or may be deemed to be, “forward-looking statements.” Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Capri about future events and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. All statements other than statements of historical facts included herein, may be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “plans”, “believes”, “expects”, “intends”, “will”, “should”, “could”, “would”, “may”, “anticipates”, “might” or similar words or phrases, are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions, which could cause actual results to differ materially from those projected or implied in any forward-looking statements. These risks, uncertainties and other factors are identified in the Company's Annual Report on Form 10-K for the fiscal year ended March 30, 2024 filed with the Securities and Exchange Commission. Please consult these documents for a more complete understanding of these risks and uncertainties. Any forward-looking statement in this press release speaks only as of the date made and Capri disclaims any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241114600043/en/
Investor Relations:
Jennifer Davis
+1 (201) 514-8234
Jennifer.Davis@CapriHoldings.com
Media:
Press@CapriHoldings.com
Source: Capri Holdings Limited
FAQ
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