NEW YORK – Capri Holdings Limited (NYSE:), the parent company of the Michael Kors brand, has announced a reorganization of its leadership team, which includes the promotion of Philippa Newman to Chief Product Officer of Michael Kors, effective December 2, 2024. Newman, who has been with the company for over 14 years and most recently held the position of President of Accessories and Footwear, will now oversee merchandising, production, licensing, and design across all Michael Kors product categories.
This leadership change is part of a broader strategy by Michael Kors to revitalize the brand and stimulate growth. John D. Idol, Chairman and CEO of Capri Holdings, will take on the additional role of CEO for Michael Kors and expressed confidence in Newman’s ability to lead the product transformation strategy.
Newman’s promotion is aligned with the company’s efforts to consolidate its design, merchandising, production, and licensing under one unified team. The aim is to execute strategies more effectively, including offering products tailored to different consumer segments, with the goal of returning Michael Kors to a growth trajectory.
In a statement, Newman expressed her enthusiasm for the opportunity to work closely with Michael Kors and the leadership team to achieve strategic objectives and reinvigorate the brand. She highlighted the strong brand equity of Michael Kors and its potential for growth.
The reorganization also includes the departure of Cedric Wilmotte from the company. Wilmotte’s contributions over his 16-year tenure were acknowledged by Idol, who wished him well in future endeavors.
Capri Holdings, known for its luxury fashion brands including Versace, Jimmy Choo, and Michael Kors, is publicly traded on the New York Stock Exchange. The company’s strategy focuses on glamorous style and craftsmanship, which is central to each of its luxury brands.
The information in this article is based on a press release statement from Capri Holdings Limited.
In other recent news, Capri Holdings, the parent company of luxury brands Michael Kors, Versace, and Jimmy Choo, experienced a shortfall in its second quarter earnings. The company reported adjusted earnings per share of $0.65, missing the anticipated $0.73, and revenues were reported at $1.08 billion, below the projected $1.18 billion, marking a 16.4% decrease year over year. Guggenheim Securities upgraded Capri Holdings from Neutral to Buy, setting a price target of $30.00, while TD Cowen and Telsey Advisory Group revised their price targets to $22 and $23 respectively. Bernstein maintained its Market Perform rating with a steady price target of $19.00.
These recent developments follow the termination of a merger agreement and a court injunction halting Capri Holdings’ proposed acquisition by Tapestry (NYSE:). Despite these challenges, Capri Holdings added 10.9 million new consumers across its brands, indicating a 13% growth compared to the previous year. The company is now focusing on profitability recovery strategies and evaluating strategic options for the future.
Analysts from various firms have provided their insights on the company’s situation. Guggenheim highlighted a potential significant earnings recovery for Capri Holdings and suggested strategies for value creation. TD Cowen and Telsey Advisory Group cited the weaker than anticipated performance of the Michael Kors brand as a reason for their revised price targets. Bernstein suggested that a breakup could be the most beneficial move for shareholders.
InvestingPro Insights
As Capri Holdings Limited (NYSE:CPRI) undergoes this significant leadership reorganization, investors may find additional context from recent financial data and expert insights valuable. According to InvestingPro, Capri’s market capitalization stands at $2.54 billion, reflecting its position in the luxury fashion market.
Despite the company’s efforts to revitalize the Michael Kors brand, Capri has faced challenges recently. InvestingPro data shows a revenue decline of 10.64% over the last twelve months, with quarterly revenue dropping by 16.42%. This context underscores the importance of the leadership changes and the company’s focus on returning to growth.
However, it’s not all gloomy for Capri. An InvestingPro Tip highlights the company’s impressive gross profit margins, which currently stand at 64.18%. This strength in profitability could provide the financial flexibility needed to execute the brand’s transformation strategy under Newman’s leadership.
Another InvestingPro Tip indicates that net income is expected to grow this year, suggesting that the company’s efforts may already be showing positive results. This aligns with the article’s mention of the company’s goal to return Michael Kors to a growth trajectory.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Capri Holdings, providing a deeper understanding of the company’s financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
