DONATELLA’S NEXT STEP?: Could another major designer change shake up the luxury fashion industry in 2025?
As reported, Capri Holdings is said to be working with Barclays to sell Versace and Jimmy Choo as it focuses on the Michael Kors turnaround, stirring yet more speculation in and around Milan. Sources say the contract of Donatella Versace, chief creative officer of the Italian brand, is up in February. The speculation surrounds whether she — or Capri — will renew it.
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Asked for a response, the Versace company said it does not comment on rumors.
Donatella Versace reached a $2.1 billion deal to sell her family’s company to the-then Michael Kors Holdings in 2018, which subsequently changed its name to Capri Holdings. She has been fundamental in spearheading the brand ever since the murder of her brother Gianni in 1997. In addition to her work as a designer, Versace has acquired A-list popularity on social media, and is widely recognized for her philanthropic work, her support of the marginalized and her initiatives to sustain the rights of the LGBTQIA+ community. She has also contributed to fuel the work of young designers such as Christopher Kane, who designed Versus with her for years.
Capri is widely seen as considering its options for both Versace and Jimmy Choo — and perhaps even for Michael Kors – since the company’s $8.5 billion buyout by Tapestry Inc. was dropped following an antitrust challenge from the U.S. government.
Versace’s first-half revenues fell 22.1 percent to $420 million, but Capri chairman and chief executive officer John Idol recently said the brand could bounce back by “engaging and energizing both new and loyal consumers, broadening our product offering, improving store productivity and returning our wholesale business to growth.”
“We believe we removed too many unique Versace statement items, which resulted in a less exciting brand and product identity,” the CEO said. “We also significantly reduced our offering of products for aspirational consumers as we tried to elevate the brand.”
But sources said Idol and Donatella Versace have often clashed over the strategy for the brand, further fueling the speculation over the designer’s contract renewal.
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