Versace reaches 1 billion USD in revenue. The luxury brand owned by Capri Holdings recorded a 53% increase in sales in the fiscal year that closed last April 2nd. And it’s not over: Capri expects the Italian brand to go even further during 2022, also thanks to the increased price tags. Versace’s performance brought the group to a record revenue of 5.65 billion USD: up 39% from the previous fiscal year.
Versace reaches 1 billion
Versace closed the year with a revenue of 1.09 billion USD, or +52.8% at constant exchange rates compared to the previous year, effectively doubling sales in North America. Operating profits reached 185 million USD, compared to the 21 million of the previous year. Meanwhile, Jimmy Choo’s sales grew 40% and Michael Kors’ by 35%. Versace is in good company in the group, which is showing encouraging results from a financial standpoint. Yet, enthusiasm isn’t nearly as high for the near future.
Caution for 2022
Capri Holdings provided cautious estimates for the current fiscal year, mainly due to: the situation in China and the global supply chain crisis. Regardless, the US group expects Versace to reach 1.22 billion USD in revenue, up 23% at constant exchange rates.
The reason behind price tags’ increments
The CEO of Capri Holdings, John D Idol, told Vogue Business that the group is increasing prices because it “aims to elevate its luxury positioning”. This price tags’ increases will mainly impact Versace. Capri Holding’s long-term objective is to reach 7 billion USD in revenue.
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