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BREAKING | Michael Kors acquires Versace for $2.1 billion. In the race to build America's first-ever luxury conglomerate, Michael Kors has acquired the world-famous Italian fashion house. But does it have what it takes to turn Versace's price tag into profit? [Link in bio] #michaelkors #versace #fashion
With the race of being relevant, fashion houses are revamping their integral structures and aligning it towards future prospects. With fashion month still going on and witnessing Versace show just a week ago, the news of that Michael Kors Holdings Ltd acquiring the Italian luxury fashion house for approx 2.1 billion dollars was shocking, to say the least. After acquiring the luxury shoe brand Jimmy Choo last year, with this new deal on the table, Michael Kors’s conglomerate shows positive and upward growth.
Versace, founded by designer Gianni Versace, is a luxury fashion house dedicated to delivering elegant and posh designs to a high-end target audience. A fashion brand with a good profile and history like Versace will only strengthen the American conglomerate. It was reported by Bloomberg that the company said it plans to increase Versace’s sales to $2 billion annually, more than double the current level, expanding the number of stores globally to 300 from about 200 and accelerating e-commerce development. They also mention in their report that Michael Kors aims to lift Versace’s accessories and footwear to 60 percent of sales from 35 percent.
Though it is said that Donatella Versace will continue to be the creative lead for the brand and Jonathan Akeroyd, the current CEO for Versace will manage the brand, we are very interested to know what will be the future of the fashion house under the reins of a conglomerate. Can’t wait to see the outcome of this powerhouse partnership!