Versace will introduce a new ‘signature’ pattern for clothes, handbags and other products next month, which officials say could reinvigorate the brand.
Versace will debut a new pattern for clothes, handbags and other products next month, which officials believe could single-handedly rejuvenate the label owned by Capri Holdings Ltd. as the luxury market turns into an epidemic-fueled Looks to recover from the decline.
Officials said Wednesday that designer Donatella Versa has developed a “unique signature pattern” that will be unveiled at their upcoming fashion show in Milan. When the as-yet-unseen design comes as retailers decline, the brand plans to pump money around the genre into a major marketing campaign.
“I believe the trajectory of the company is going to change significantly in the next 24 months,” said John Idol, Capri’s chief executive, on a conference call following the third quarter earnings report. The company’s shares, which also own the Michael Kors and Jimmy Choo labels, jumped 7.6% on Wednesday in New York.
Signature patterns can define high-end brands – think Burberry’s tartan or Gucci’s red and green stripes – and have a direct impact on sales. Versaq is trying to find a new hit design to follow Baroku V, a logo that has been replicated across clothes, handbags, shoes, belts and jewelry.
Idol said executive officials are building a “more stable base” for Versace that it didn’t do before the $ 2.1 billion acquisition of the Italian label in 2018, by selling more goods and shoes to improve operating margins. He said that beauty is still based on the runway look and creative concepts of Donatella Versace.
“As we build a foundation for this company that the company has not really had over its history compared to its luxury peers, that will dramatically improve profitability for Versace,” said the CEO said.
Versace’s revenue was flat in the last quarter, overtaking its sister brands Michael Kors and Jimmy Choo, both of which saw major declines. Capri’s total adjusted profit is estimated by top analysts at $ 1.65 per share.
(Updated with share trading in the third paragraph)