Versace plans to open more than 100 stores by 2022

By RetailFOXBusiness

Michael Kors agrees to buy Versace for $2.1B

Michael Kors said that it would buy Versace for $2.1 billion.

While some retailers look to shut down stores amid the rise of e-commerce, Versace said Tuesday it was doing the opposite — planning to open more than 100 stores by 2022.

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The luxury fashion brand’s owner, Capri Holdings Ltd., said at an investor day Tuesday it’s planning to increase Versace’s global retail footprint from about 188 stores to 300 stores by 2022 while renovating existing locations. Capri Holdings, which also owns Michael Kors and Jimmy Choo, purchased Versace last year for about $2.2 billion.

“It’s very clear: The productivity in our stores is not what it should be,” said Versace’s CEO Jonathan Akeroyd on investor day. “We need to rapidly increase the productivity and this will really be the real driver to reach us to our $2 billion [target]."

Versace is looking to have 300 stores open by 2022. It currently has about 188 locations. (iStock)

More than half of Versace’s stores are in Asia — with 40 locations in China. The brand is slated to open a store in Beijing this week that will be the largest location in the country while eyeing other locations in Paris and London, Bloomberg reported.

A “full refurbishment program” is expected for 28 Versace stores in the U.S., Akeroyd said.

John Idol, CEO of Capri Holdings, said the company will also “build on Versace’s luxury runway momentum” to reach its revenue goal. He noted that Hollywood A-listers and global stars want to be associated with the label.

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“Our fashion shows have some of the most followed, engaged customers of any luxury brand in the entire world,” Idol said Tuesday.

Versace will also focus on releasing more handbags, footwear and other small leather goods, to move its accessories revenue from 35 percent to 60 percent in “relatively short term.” Akeroyd said expanding accessories will be a “game-changer” for the brand.

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Several new stores that have opened in recent months have dedicated more space to men and women’s bags, backpacks and other accessories, Bloomberg reported. Akeroyd said the bags will emphasize Versace’s signature house codes and explore a new logo.

TickerSecurityLastChange%Chg
CPRICAPRI HOLDINGS LTD26.84-1.17-4.18%