Versace profits grew by 55.5% during the pandemic But the brand's group, Capri Holdings, has reported losses of 551 million dollars

For Capri Holdings, the group that owns Versace, Jimmy Choo and Michael Kors, the last quarter of the fiscal year, which ended March 28, was catastrophic: the lockdown caused losses of 551 million dollars and, for the current quarter, is expected to further decline by 70% in sales. But the situation is more complicated than that: if, in fact, as Jing Daily reports, the revenue of Jimmy Choo and Michael Kors fell by 23% and 18.4% respectively, those of Versace have even increased by 55.5%, a figure that translates into a profit of 213 million dollars – performance attributed by the CEO of Capri Holdings, John Idol, to the elimination of the Versace Collection and Versus lines. Despite this, the losses were severe: the brand stores were only open at the end of May and saw sales traffic even halved compared to before, inventory damage alone amounted to 92 million dollars and good e-commerce performance was not enough to cover the damage.

The current quarter is expected to close for Capri Holdings with USD 1.1 billion in liquidity and 1.8 billion in debt. However, CEO John Idol has made secret that the ascent will be tough:

«We view our opportunity to resume growth in 2022. I really have to talk about fiscal 2022 because 2021, we just don’t know when we’ll be back to a more normalized rate. We believe in the future and making investments in luxury takes time».