Versace plans for a profitable future

Versace is banking on some new changes to the Italian fashion house to rejuvenate Capri Holdings Ltd. as the luxury market attempts to recover from the decline in business due to the COVID-19 pandemic. Versace will be debuting a new pattern for handbags, clothing, and other products for the upcoming Milan runway show.

Versace is planning on incorporating the new unique signature pattern in upcoming designs that will be featured in a major marketing campaign. Capri’s chief executive officer, John Idol, believes the change in the trajectory of the company will be significant over the next 24 months.

High-end brands can be defined by signature patterns that are easily identifiable and versatile for different designs such as Burberry’s tartan or Gucci’s green and red stripes. Versace has tested the waters on reimagining their logo including the incorporation of the Barocco V appeared in recent collections on pieces including clothes and accessories.

Capri is working to build stability for the Versace brand after the $2.1 billion acquisition in 2018 with the goal to improve operating margins by selling more footwear and accessories. The runway collection will stay true to the brand inspired by creative concepts by Donatella Versace.

Capri also operates sister brands including Jimmy Choo and Michael Kors, both experienced declining business last quarter with Versace’s revenue falling flat. Share prices for Capri Holdings Ltd. increased 7.6% shortly after the announcement of the new Versace development which shows promising news for the Italian fashion house.