Luxury - Versace boosts Capri Q1 results and then causes China storm
13 August 2019

Capri Holdings, the group that comprises the Jimmy Choo, Michael Kors and Versace brands, announced revenues of more than $1.3 billion for the first quarter of its current fiscal year, the three-month period to the end of June.

This figure represents an increase of 11.9% compared to the corresponding quarter in 2018.

Michael Kors contributed $981 million towards the group total, slipping 4.7% year on year. Jimmy Choo’s contribution was $158 million, a reduction of 8.7% compared to the same quarter last year. Versace’s contribution of $207 million for the quarter is what led to the group figure showing an increase because Versace only became part of the group at the end of 2018.

Donatella Versace and Michael Kors

Then the storm blew up……

Shortly after the release of the first-quarter figures, however, Versace became the latest Italian luxury brand to face negative publicity in China. The controversy was over something as simple as a T-shirt, designed to show the global reach of the Versace brand.

It listed important fashion cities around the world and the countries they are in. Among these were Shanghai and Beijing, but the T-shirt also listed Macau and Hong Kong as being countries in their own right, provoking an angry reaction among Chinese commentators.

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