This Presentation works on the analysis of the news of Michael Kors buying Versace for $2 billion. How the news would affect Versace as well as MK's credibility as well the business of both the fashion houses. The presentation has SWOC analysis on how the deal would be affecting the business of both the fashion brands. Also, an conclusion on what I feel about the deal based on authentic research done by Me.

1. MICHAEL KORS UPS THE GLAMOUR, BUYS
VERSACE FOR $2 BILLION
Economic times dated : September 25th, 2018
Presented by: Megha Poojari
1

2. contents
• Introduction to the companies
• About the news
• Reasons for Acquisition
• Media
• Post Acquisition Analysis
• SWOT Analysis
• Conclusion
2

3. Introduction to the companies
MICHAEL KORS
HOLDINGS LIMITED
• It is American fashion
company.
• Founded by Michael Kors in
1981.
• CEO: John D Idol
• Annual Revenue: US $4.71
Billion (2016)
• Net Income: US $839.1
Million
• Headquarter: New York,
United States.
VERSACE
• Italian luxury fashion
company
• Founded by Gianni Versace in
1978.
• CEO: Gian Giacomo Ferraris
(till September 2018)
• Annual Revenue: 669 Million
Euros
• Net Income: US $1.7 Billion
(Jan,2018)
• Headquarter: Milan, Italy.
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4. ABOUT THE NEWS
• Michael Kors bought Versace for $2.2 Billion.
• Deal is inclusive of Versace’s debt.
• Michael Kors plans to increase Versace’s revenue.
• Increase in store footprint & online presence.
• Michael Kors renamed as ‘Capri Holdings’.
• Versace family will become Shareholders.
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5. Reasons for Acquisition
• Michael Kors expansion into European market.
• Building a strong brand in Luxury Fashion.
• Stagnated Versace’s revenue.
• Versace’s struggle to boost sales.
• Overshadowed by Gucci an Italian brand.
• Michael Kors slow growth in core brands.
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6. 37
28
13
8
10
1 3
0
5
10
15
20
25
30
35
40
America's Retail America's Wholesale Europe Retail Europe Wholesale Asia Retail Asia Wholesale Licensing
REVENUEINPERCENT
Share of Kors 2018 Revenue
Share of Kors 2018 Revenue
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Source: Bernstein
Buying Versace would help Kors broaden its reach beyond North America

7. MULTIMEDIA
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8. POST ACQUISITION ANALYSIS
• Michael Kors has three major fashion houses.
• Michael Kors exposure to European Market.
• Post Acquisition looks Optimistic for both.
• Donatella Versace will remain the creative director.
• Expected turnover to exceed 1 Billion Euros.
• Blackstone will fully quit Versace.
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9. Swot analysis
STRENGTHS
• Two major brands coming
together.
• Exposure to global market.
• Versace’s debt cleared.
OPPORTUNITIES
• Exposure to European Market.
• Enhanced Brand Image.
• Versace’s increased presence.
WEAKNESSES
• Versace’s customers are
unhappy
• May damage Versace’s
credibility.
• Disagreements in thoughts.
THREATS
• Competitors like Louis Vuitton
and Tapestry Inc.
• Hasty decisions by Michael
Kors. 9

10. CONCLUSION
• Acquisition is called overpaid by critics.
• Unhappy customers of both brands.
• Might result into over exposition.
• A room for greater opportunities initially.
• Greater market share globally.
• Achieve primary goal of Global Expansion.
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11. BIBLIOGRAPHY
• Economic Times (September 25,2018)
https://economictimes.indiatimes.com/news/international/business/mi
chael-kors-ups-the-glamour-buys-versace-for-2-
billion/articleshow/65951226.cms
• CNBC (September 25,2018)
https://www.cnbc.com/2018/09/25/michael-kors-to-buy-versace-laying-
claim-to-european-luxury-market.html
• The Guardian (September 25,2018)
https://www.theguardian.com/fashion/2018/sep/25/michael-kors-
buys-versace-capri-donatella
• Business Insider India (September 26,2018)
https://www.businessinsider.in/Michael-Kors-is-buying-Versace-in-a-2-
12-billion-deal-Heres-the-full-story-of-how-Versace-became-so-iconic-
/articleshow/65957208.cms
• Bloomberg (September 25,2018)
https://www.bloomberg.com/news/articles/2018-09-24/michael-kors-is-
said-to-near-agreement-to-buy-italy-s-versace
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12. GRAZIE!
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