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SHOPPING SPREE

Michael Kors to Buy Versace for $2.1B

The game changer for the fashion world as an American company takes over a European icon.

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A Fashion Statement

  • Kors, known for its affordable-luxury, will buy high-end Versace with its $1,500 handbags & $2,500 dresses.
  • Plans to open 100 stores globally, expand online sales & focus on accessories & shoes.
  • Kors will rename co. “Capri Holdings,” for the fashionable Italian vacation spot, to better reflect its diverse brands.
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Why it Matters

Deal creates America’s first true luxury fashion conglomerate. (Tapestry, which owns Coach, Kate Spade & Stuart Weitzman, is more mid-to-high-range.)

America has the largest apparel market in the world, but has yet to produce a global, multi-brand company like European names Gucci or Christian Dior.

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Some Things to Consider:
Fashion is Fickle

  • Too much, too fast?
    “Kors just bought Jimmy Choo 11 months ago,” a Wells Fargo analyst warns.
  • Discounting concerns:
    “Time to get Versace at your local TJ MAXX and Marshall’s,” tweeted writer Danielle Ayoka.
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Donatella Versace has served as the fashion house's creative director since her brother Gianni, who founded it 1987, was famously murdered in 1997. She had no training in fashion, but Kors CEO says she's an “essential component” and will stay on to oversee the brand.

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