Glossy – In the past two years, Capri Holdings, formerly known as Michael Kors Holdings, has attempted to establish itself as a competitor to huge luxury groups like LVMH and Richemont. In the last two years, it spent billions to acquire big brands like Versace and Jimmy Choo.
“Opening more stores is one strategy to boost revenues, but it could backfire,” said David Naumann, vp of marketing at BRP Consulting. “Opening stores takes time, and if they are not in the right locations, they have the risk of increasing revenues at the expense of profits. For a faster revenue boost and controlled profit margins, Capri Holdings should consider focusing on expanding its distribution with luxury department stores or online marketplaces.”