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As Americans look to refresh their wardrobes this holiday season — thanks to the resumption of active social lifestyle, events and occasions — apparel companies have been witnessing resurgence in demand. Sales at clothing & clothing accessories stores have been increasing as more people venture out and shop for their loved ones. Without doubt, Capri Holdings Limited CPRI is set to cash in on the opportunities.
The company has been constantly deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omni-channel capabilities and deepen engagement with customers.
Industry experts foresee sales opportunities and operational efficiencies when social distancing measures and other restrictions such as limited-hour operations are further removed, and stores as well as distribution centers operate normally.
Building Strong Presence Across Spectrum
Capri Holdings has been reinforcing its position in the luxury fashion space, and looks to maximize the potentials of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. While exploring growth opportunities in apparel is crucial to the company, it is emphasizing on boosting its accessories business including leather goods and handbags.
In recent developments, the company’s Versace brand expanded its license deal with EuroItalia for an additional period of 15 years. EuroItalia is a leading global fragrance and cosmetics company based in Italy. Additionally, management informed that Michael Kors and EuroItalia will ink a 15-year deal to make EuroItalia the Michael Kors brand’s men’s and women’s fragrance licensee worldwide.
The company remains confident of positioning Versace as a leading luxury leather house, and expanding accessories revenues to $1 billion over time and more than double footwear revenues. Additionally, it plans to increase the store count to 300 and grow e-commerce sales to $500 million. Management aims to enhance the contribution from accessories to 30% of Jimmy Choo’s revenues. The company aims to triple Jimmy Choo’s e-commerce revenues and increase global retail footprint to 300 stores.
At Michael Kors, the company continues to increase signature penetration across all product categories with the goal to increase the same to 50% of the business. Men’s business remains one of the fastest-growing categories at Michael Kors. The company plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues.
Capri Holdings’ strengthening of omni-channel solutions, expanding customer reach and focus on brand innovation are likely to yield results in the days ahead. The company, which shares space with Abercrombie & Fitch ANF, Tapestry TPR and Gap GPS, envisions revenues to be approximately $5.3 billion for fiscal 2022. Fiscal 2022 top-line projection assumes revenues of approximately $1.025 billion from Versace, $550 million from Jimmy Choo, and $3.725 billion from Michael Kors.
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