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Capri Holdings

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Capri Holdings Limited
FormerlyMichael Kors Holdings Limited
Company typePublic
ISINVGG1890L1076
IndustryFashion
Founded1981; 43 years ago (1981)
FounderMichael Kors
Headquarters
Executive offices: London;[1] Operations offices: New York
Area served
Worldwide
Key people
Products
  • Apparel
  • handbags
  • footwear
  • watches
  • accessories
RevenueDecrease US$5.17 billion (2024)
Decrease US$−241 million (2024)
Decrease US$−229 million (2024)
Total assetsDecrease US$6.69 billion (2024)
Total equityDecrease US$1.60 billion (2024)
Number of employees
15,100 (2024)
Subsidiaries
Websitecapriholdings.com
Footnotes / references
[2]
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,[3] with executive offices in London[3] and operational offices in New York. It was founded in 1981 by American designer Michael Kors.[4] 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.[5][6]

Capri is the parent company of Kors' eponymous brand, as well as Versace and Jimmy Choo. Tapestry, owner of Coach New York and Kate Spade, offered to buy Capri for $8.5 billion in 2023,[7][8] but called off the acquisition after it was blocked by a federal judge the following year.[9]

Background

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Main article: Michael Kors

Founder Michael Kors enrolled at the Fashion Institute of Technology in New York City in 1977, but dropped out after nine months.[10] 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

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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.[11] 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.[12]

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.[13][14] 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.[15] In June 2018, Chou sold the last of his investment in Kors.[14]

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 impact 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.[16][17] The merger was blocked on 24 October 2024.[18] Capri and Tapestry committed to appealing the decision,[18] but called off the merger the following month.[19]

Operations

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A Michael Kors purse shop

By 2014, the annual revenue for the company was $3.2 billion, with a net income of $670 million.[20] By April 2017, the company had 827 full-price or outlet stores and 133 licensed stores.[21] Since 2017, the company said that it would no longer use animal fur in any of its products.[22] In 2018, Michael Kors announced two new stores, one in Waterloo, New York,[23] as well as one in the Fairview Park Mall in Kitchener, Ontario.

Purchases: Jimmy Choo, Versace

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In July 2017, MKH Ltd bought Jimmy Choo Ltd for £897 million.[24] In September 2018, MKH Ltd announced a deal to take over Versace. The Italian fashion group was valued at $2.1 billion.[25] Capri Holdings has planned to up Versace's global retail footprint from approximately 200 to 300 stores.[26] On January 2, 2019 after closing the deal, the company was renamed to Capri Holdings.[27][28]

Trademark protection

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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.[29]

References

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  1. ^ "Capri Holdings Investor FAQs". Retrieved June 7, 2020.
  2. ^ "FY 2024 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. May 29, 2024.
  3. ^ a b "Capri Holdings Limited - Overview". www.capriholdings.com.
  4. ^ "Shares of Michael Kors as Hot as Its Wares". The New York Times. February 14, 2012. Retrieved January 4, 2015.
  5. ^ "Michael Kors plans rapid expansion with 45 more North American stores". FierceRetail. Retrieved January 4, 2015.
  6. ^ "Michael Kors Dubai". malloftheemirates.com. Archived from the original on February 13, 2014. Retrieved June 1, 2016.
  7. ^ 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)
  8. ^ 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.
  9. ^ "Tapestry $8.5 Billion Capri Deal Halted by Judge in FTC Win (3)". Bloomberg. October 24, 2023. Retrieved October 24, 2024.
  10. ^ Infomat Michael Kors Biography Archived January 14, 2010, at the Wayback Machine, Infomat.com, September 10, 2009
  11. ^ "Michael Kors: Retail's next billion-dollar man". cnn.com.
  12. ^ The Michael Kors Story Archived July 29, 2017, at the Wayback Machine, December 11, 2012
  13. ^ "Silas Chouis One of the 500 People Shaping the Global Fashion Industry". businessoffashion.com. Retrieved September 26, 2018.
  14. ^ a b "How tycoon Silas Chou made a fortune from two global brands". ejinsight.com. November 8, 2016. Retrieved September 26, 2018.
  15. ^ "Michael Kors Is Fashion's Newest Billionaire". Forbes. January 2014.
  16. ^ D'Innocenzio, Anne (April 23, 2024). "Federal Trade Commission sues to block Tapestry's $8.5B acquisition of Capri". Associated Press.
  17. ^ Repko, Melissa (April 22, 2024). "FTC sues to block Coach parent Tapestry's acquisition of Capri Holdings". CNBC. Retrieved April 23, 2024.
  18. ^ a b Van Voris, Bob; Shen, Yiqin; Dometsch, Chris (October 24, 2024). "Tapestry's $8.5 Billion Capri Deal Halted in FTC Win". Bloomberg.com. Retrieved October 24, 2024.
  19. ^ Mishra, Savyata; Rajesh, Ananya Mariam (November 14, 2024). "Coach parent Tapestry pulls $8.5 bln bid for Capri after FTC roadblock". Reuters.
  20. ^ "Form 10-K". www.sec.gov. Retrieved May 2, 2015.
  21. ^ "Michael Kors to close up to 125 stores as luxury retail woes deepen". USA Today. Retrieved September 18, 2017.
  22. ^ "Michael Kors Holdings Limited Adopts Fur-Free Policy," Michael Kors Holdings news release, 15 December 2017.
  23. ^ "Michael Kors to open in Waterloo". Rochester Democrat and Chronicle. Retrieved March 30, 2018.
  24. ^ BBC News (July 25, 2017). "Jimmy Choo bought by Michael Kors in £896m deal". BBC.co.uk. Retrieved July 25, 2017.
  25. ^ 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.
  26. ^ Newbold, Alice (January 2, 2019). "Michael Kors Holdings Ltd Begins 2019 As Capri Holdings". British Vogue. Retrieved May 19, 2020.
  27. ^ "Versace fashion house bought by Michael Kors for $2.1bn to make super group". Sky News. Retrieved September 25, 2018.
  28. ^ "Michael Kors Holdings Limited to Be Renamed Capri Holdings Limited". investors.michaelkors.com. Retrieved September 25, 2018.
  29. ^ "Luxury brand Michael Kors strikes back at Quebec counterfeiters". The Globe and Mail. April 23, 2015. Retrieved May 2, 2015.
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