Michael Kors Holding completed its $2.1 billion acquisition of Versace and renamed itself Capri Holdings. The fashion group also includes the high-end shoe brand Jimmy Choo; the combined company is expected to generate $8 billion in annual revenue within the next few years as distribution expands in Asia, Capri said.

Versace, which has longstanding licensing agreements with Luxottica (eyewear) and EuroItalia (fragrances), is expected to produce about $2 billion in annual revenue “over the long term”, while the bulk of Capri’s sales – about $5 billion – is driven by the Kors brand, with Jimmy Choo contributing $1 billion. Capri didn’t disclose timing for achieving $2 billion in Versace sales. Versace was forecast to generate $850 million in revenue in 2018, analysts have said.

Capri will seek to expand the Versace brand by opening 100 new stores increasing its handbag, leather goods and footwear businesses to 60% of annual revenue, up from the current 35%, Capri has said.

Donatella Versace will remain Chief Creative Officer for the Versace brand, while founder Michael Kors will head the Kors brand.

Contact:

Capri Holdings, Thomas Edwards, CFO, 212-201-8100