Capri Holdings officially separated from Versace this week, marking a “landmark moment” for the US fashion group, which now wants to reposition and focus. Capri insists the divestment is not a retreat but a cash-backed strategic reset that positions Michael Kors as a growth engine.
Capri boss John Idol, who also heads Michael Kors as CEO, gave an outlook after the Versace sale in a conference call. Idol acknowledged that previous repositioning attempts were misguided, citing a period in which Michael Kors moved away from its core identity, leading to an unsettled customer base.
Michael Kors corrects course and plans return to “modern glamour”
Initial efforts at a “complete transformation” were not well received, Idol admitted. However, the executive was more enthusiastic about the next phase: a return to the Kors DNA through “modern glamour” and a more accessible aspiration. The focus is on the mission to restore Kors’ “jet-set” roots, which is already underlined through storytelling narratives in hotel settings. The UK served as a test market for this relaunch, with Idol noting that the brand’s full-price business had performed positively, confirming the new creative direction.
Attention is also paid to the Michael Kors branch network. The brand closed around 125 stores in the last three years and stabilized its network in preparation for the selective introduction of a revamped store concept. “We will very comfortably renovate over 50 percent of our store fleet worldwide over the next three years. If we can do it faster, we will,” Idol noted, citing plans for a warmer, more homey retail design.
Within this new concept, Kors is placing an emphasis on ready-to-wear, which will have an expanded presence at the renovated locations. There is also a new “Jet Lounge” feature that integrates dining options into the retail experience in selected locations.
To reinforce this return to “modern glamour,” Idol explained that Capri further revised Michael Kors’ pricing architecture. While the previous restructuring alienated core customers and weakened commitment to the full-price segment, Michael Kors is now repositioning itself to support its revamped aesthetic. Accordingly, the brand will reduce its reliance on promotions and focus on restoring value perception.
“As we see that the renovations are working, the new products are working and the pricing architecture is working, there is a big gap between where we were, where we are today and where we could be,” Idol said.
2026 is expected to usher in a major change: store renovations and an Asian upswing
Capri is therefore confident of returning to near peak sales within a sustainable time frame. “Michael Kors is a 44-year-old brand. It had a peak sales volume of about $4.6 billion and we are at about $3 billion today. We strongly believe that we can get the company back to $4 billion over time,” Idol emphasized.
Capri’s other brand, Jimmy Choo, is also forecast to perform positively in the next financial year, driven by lifestyle expansion, accessories and casual footwear. The brand’s retail network has already been largely renovated and is now focused on expanding its appeal.
In the current financial year, Capri fluctuated between profit and loss; After returning to profitability in the first quarter, the company slipped back into the red in the second quarter. A renewed focus is now on improving margins through reduced reliance on off-price channels, targeted price increases and revitalizing the Asian business. Elsewhere, the North American market was described as “relatively healthy”, with fewer signs of consumer stress and positive sentiment extending into next year. The market remained strong in Europe, but Capri remains cautious about the region.
For the coming fiscal year, Capri expects a relatively “flat” first half as the company carries out store renovations, addresses weakness in Asia and cleans up its product assortment. From the third quarter onwards, the group expects a turnaround as a result of these changes, which should reflect a turnaround in performance in a crucial turnaround year for the company.