Who could buy Versace from Capri?

Capri is reportedly gearing up to sell Versace and Jimmy Choo, which would free up the group to work on the revamp of its crown jewel, Michael Kors. Capri is said to be working with British bank Barclays to find buyers for the Versace and Jimmy Choo businesses according to a WWD report, in order to invest in and focus on Michael Kors, which makes up the bulk of Capri’s revenue. (Kors raked in $738 million in the second quarter of 2025, ended 28 September; versus Versace’s $201 million and Jimmy Choo’s $140 million.) Capri did not respond to a request for comment to confirm the reports. A breakup of the group was a top prediction of what would happen to Capri in the aftermath of its attempted merger with Tapestry. Investors are keen. Capri stocks rose 4 per cent in after hours trading on 13 December, after the reports surfaced that a sale was in the pipeline. “This is not unexpected, given Capri’s current financial position and the recent news of [the] merger with Tapestry getting blocked,” says luxury industry advisor Robert Burke. “This makes sense for Capri and the market clearly agrees.” After the Tapestry-Capri merger was officially called off in November, the latter — which earlier that month reported that its Q2 sales were down 16.4 per cent — was left with an uphill battle. It’s tasked with re-establishing itself as a US luxury player, but without Tapestry, analysts agreed that action was needed. On 8 November, Bernstein analyst Aneesha Sherman floated a sale of Versace and Jimmy Choo as a viable option, noting that the market has shown “clear interest” in both brands. Versace is the standout, according to analysts, who noted the brand as one of the most interesting acquisition targets for 2025. “There are very few legacy brands that are up for deals, so if an interesting brand comes to the market — provided that the price they’re asking for is reasonable — I think there probably will be interest,” McKinsey partner Joëlle Grunberg told Vogue Business. Potential buyers There’s a wide net of potential buyers — but it won’t necessarily be the same for both brands. Burke expects that they will be sold to different buyers, given that the brands themselves are dissimilar. Saunders agrees, noting that the two “have different dynamics”. Tapestry is one potential buyer, “ironically”, Saunders says, given the unsuccessful merger, but it still has ambitions to become a bigger house of brands. Alternatively, he says another larger luxury group could step in. Burke agrees. “You’d imagine the typical big players in the space would have some interest,” he says. He suggests Richemont or a shoe-focused group like Tod’s could have interest in Jimmy Choo, which has been the most resilient of Capri’s brands. Versace needs a “more specific” fit, Burke says, in that it is an iconic and globally recognised brand that he says is ready for a new chapter. “We know they have a very strong business in Asia and the Middle East, so perhaps a big conglomerate from one of those regions would take a serious look at the brand.” Dubai-based Chalhoub Group is already the regional distribution and joint venture partner for Versace (and Jimmy Choo). All said, it’s early days, making it hard to predict, Burke cautions. “The process has seemingly just begun in earnest.” What it could mean for Capri A sale would mean that Capri will have time — and money — to focus on reinvigorating the Michael Kors brand. It’s no small fix. Saunders calls the move a “radical solution” to its current bind and need to satisfy investors. To Burke, it’s the right move. “They should take the time and resources this move affords to focus on their flagship brand,” Burke says. “As one of the great American brands, Michael Kors is well positioned for a refocused turnaround.” The company took a step towards securing the brand’s future on 27 November, appointing group CEO and chairman John Idol as CEO of Michael Kors to steer its turnaround. Philippa Newman was also promoted from president of accessories and footwear at Michael Kors to chief product officer. “We are moving quickly to implement strategic initiatives to stabilise revenues and return to growth,” Idol said in the release. “This reorganisation reinforces Michael Kors’s plans to engage and energise both new and loyal consumers, create exciting fashion and core products with compelling value, improve store productivity and return our wholesale business to growth.” Not everyone is convinced it’s a clear win. “It would leave Capri as a weakened business and would represent an end to its ambitions of being a house of brands,” Saunders says. “It would, essentially, be going back to square one of being a single-brand business. He acknowledges the merit of not needing to manage multiple brands, but reiterates the work it will take to get Michael Kors back on track. All going ahead, the deal could well be completed in 2025, experts agree. “As the brands are quite small, there should not be regulatory scrutiny over a deal, which will speed things up,” Saunders says. Burke agrees. “Capri is quick on their feet and getting an indication of interest levels before the New Year is probably a great sign of how fast they want to move.” Comments, questions or feedback? Email us at feedback@voguebusiness.com. More from this author: The US TikTok ban is getting closer. What does it mean for brands and creators? PVH reports lower-than-expected sales dip What is mocha mousse and will it sell?

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