who-owns-versace

Who Owns Versace?

Versace is owned by Capri Holdings, which acquired it for Euro 1.83 billion (over $2 billion) in 2018. Versace is part of the group, which also owns Jimmy Choo and Michael Kors. Versace generated over a billion dollars in revenue in 2022. Capri Holdings is primarily owned by John D. Idol, chairman and CEO of Capri Holdings (formerly Michael Kors Holdings) and CEO of Michael Kors. Top institutional investors comprise FMR (Fidelity) with 14.95% ownership, The Vanguard Group (9.47%), BlackRock with 8.9% ownership, BlackRock with 8.9% ownership, and Senvest Management with 5.1% of ownership.

AspectDescriptionAnalysisExamples
Products and ServicesVersace is an Italian luxury fashion brand known for its high-end clothing, accessories, fragrances, and home furnishings. The company offers a range of products, including haute couture, ready-to-wear fashion, shoes, handbags, jewelry, eyewear, and perfumes. Versace also operates boutique stores and online retail to sell its products.Versace’s core offerings include luxury fashion and accessories, targeting a discerning and affluent customer base. The brand is known for its iconic Medusa logo and bold, glamorous designs. Boutique stores and online retail enhance accessibility for customers.Versace clothing (e.g., dresses, suits), accessories (e.g., handbags, belts), fragrances (e.g., Versace Eros), home furnishings (e.g., Versace Home Collection), boutique stores, online retail.
Revenue StreamsVersace generates revenue primarily through the sale of luxury fashion products and accessories. Income also comes from fragrances and licensing agreements for the brand’s name and logo, as well as royalties from collaborations.Revenue from luxury fashion product sales is a significant portion of income, driven by brand exclusivity. Fragrances contribute to diversified income streams. Licensing agreements and collaborations generate additional revenue.Revenue from sales of luxury clothing and accessories, income from fragrance sales, licensing agreements for brand use (e.g., Versace Home), royalties from collaborations (e.g., Versace x H&M).
Customer SegmentsVersace serves an affluent and fashion-conscious customer base that seeks high-quality luxury products. The brand appeals to individuals who appreciate bold and glamorous designs. Versace’s clientele includes celebrities and fashion enthusiasts.Versace’s target demographic includes affluent consumers seeking exclusive luxury fashion and accessories. The brand’s bold and glamorous designs attract fashion-conscious individuals. Celebrity endorsements enhance brand appeal.Affluent consumers seeking exclusive luxury fashion, fashion-conscious individuals valuing bold and glamorous designs, celebrities endorsing Versace products.
Distribution ChannelsVersace distributes its products through a network of boutique stores worldwide, including flagship stores in major fashion capitals. The company also sells its products through authorized high-end retailers and online through its official website and e-commerce partners.Boutique stores in fashion capitals provide exclusive shopping experiences. Authorized high-end retailers expand brand reach. E-commerce platforms cater to online shoppers.Versace boutique stores (e.g., Milan, Paris, New York), authorized high-end retailers (e.g., department stores), online retail through the official website and e-commerce partners.
Key PartnershipsVersace collaborates with authorized high-end retailers to showcase and sell its products. The company may also have licensing partnerships with manufacturers for Versace-branded merchandise. Collaborations with celebrities and designers for special collections enhance brand visibility.Collaborations with high-end retailers expand the brand’s physical presence. Licensing partnerships ensure availability of Versace-branded merchandise. Collaborations with celebrities and designers create buzz and attract customers.Collaborations with authorized high-end retailers (e.g., Saks Fifth Avenue), licensing partnerships for branded merchandise (e.g., Versace Home Collection), collaborations with celebrities (e.g., Jennifer Lopez) and designers (e.g., Donatella Versace).
Key ResourcesVersace’s key resources include its iconic brand name, fashion design expertise, manufacturing capabilities, boutique stores, online retail platform, marketing and advertising efforts, and a commitment to creating bold and glamorous fashion.The Versace brand name signifies luxury and exclusivity. Expertise in fashion design ensures unique and glamorous collections. Manufacturing capabilities maintain product quality. Boutique stores provide a physical presence. Online retail expands accessibility. Marketing and advertising promote the brand’s bold style.Versace brand recognition, fashion design teams, manufacturing facilities, boutique stores, online retail platform, marketing campaigns, commitment to bold and glamorous fashion.
Cost StructureVersace incurs costs in fashion design and production, manufacturing of clothing and accessories, operating boutique stores, marketing and advertising campaigns, employee salaries (including designers and models), and maintaining the online retail platform.Costs associated with fashion design and production are significant due to the emphasis on luxury and quality. Operating boutique stores in prestigious locations requires financial resources. Marketing and advertising campaigns promote the brand. Employee salaries, especially for designers and models, are substantial. Online retail platform maintenance is necessary for digital sales.Costs related to fashion design and production of luxury items, operating and maintaining boutique stores, marketing and advertising expenses, employee salaries (including designers and models), maintenance of the online retail platform.
Competitive AdvantageVersace’s competitive advantage lies in its iconic brand name, bold and glamorous fashion designs, exclusivity, and high-quality luxury products. The brand targets an affluent and fashion-conscious audience. Versace’s celebrity endorsements and collaborations enhance brand visibility.The Versace brand name is synonymous with luxury and glamour. Bold and unique fashion designs set it apart in the luxury fashion industry. Exclusivity appeals to affluent consumers. Celebrity endorsements and collaborations generate excitement and attract customers.Versace’s iconic brand name, bold and glamorous fashion collections, exclusivity, celebrity endorsements by figures like Jennifer Lopez, collaborations with designers for unique collections.
Value PropositionVersace provides customers with exclusive luxury fashion and accessories characterized by bold and glamorous designs. The brand offers high-quality, iconic products that appeal to affluent individuals seeking fashion-forward styles.Versace’s value proposition centers on delivering exclusive luxury fashion and accessories. Bold and glamorous designs cater to fashion-conscious individuals. The brand’s high-quality products and iconic status provide a unique shopping experience.Wearing exclusive Versace clothing and accessories, experiencing the bold and glamorous designs, owning high-quality luxury fashion pieces.

Origin Story

Versace is an Italian luxury fashion company that was founded in 1978 by Gianni Versace and is headquartered in Milan. Versace is known for its bold, colorful designs and use of luxurious materials in its ready-to-wear and related accessories.

How did Versace come to be? Let’s delve into the details below.

Early years

Versace’s mother was a dressmaker and he spent many of his formative years as her apprentice. Over this period, he developed a passion for fashion and reportedly designed his first dress at the age of 9. 

Versace moved to Milan in the early 1970s and worked as a freelance designer for various fashion houses such as Genny, Complice, Mario Valentino, and Callaghan. His work was praised by the industry and Versace had dreams of starting his own brand someday. 

The first Versace store

This dream would be realized in 1978 after the first Versace boutique opened in Milan. The venture was funded by the Girombelli Italian fashion family, with Versace joined by his brother Santo (who served as CEO) and sister Donatella who was vice president and designer. 

Versace quickly gained a reputation for his bold and innovative designs, and his collections were soon featured in prestigious fashion magazines and worn by celebrities.

Direction and expansion

From a business perspective, Versace was one of the only fashion designers of the time to control every aspect of branding and marketing.

Over the 80s and 90s, he built a fashion empire based on sensual ensembles that included PVC baby-doll dresses and silver-mesh togas, among numerous other iconic pieces. Versace was frequently criticized by those who believed his products to be vulgar, but he continued unfazed. 

Versace also expanded into other products over this period such as accessories, furniture, and even branded fine China. But it was his connections in the music industry and an innovative marketing approach that catapulted the brand to success.

Versace was known to be friends with numerous music stars. When the likes of Elton John, Eric Clapton, Cher, and Madonna started wearing Versace products at award ceremonies and photo shoots, people took notice and wanted to wear the same.

While commonplace today, Versace understood the importance of celebrity brand endorsements and was one of the first to link the music industry with the fashion industry to market products. 

In 1993, the famous Versace logo of the head of Medusa came into existence. Versace said he was inspired by the Greek ruins he used to play in as a child.

Versace’s death

Versace passed away in tragic circumstances in 1997. At the time of his death, his work was colorful but much more refined than in his prime, and the company had further expanded into handbags, jewelry, perfume, household items, and clothing.

Sister Donatella became creative director while Santo became CEO. Allegra Versace, the daughter of Donatella, inherited a 50% stake in the company that she assumed control of on her 18th birthday in 2004.

Restructure and change of ownership

As profits started to dwindle in the 2000s, the company was restructured as Versace Group by then-CEO Fabio Massimo Cacciatori. However, Cacciatori and subsequent CEO Giancarlo di Risio resigned after disputes with the Versace family over the direction of the company.

The Blackstone Group purchased a 20% stake in Versace in 2014 for €210 million with the funds used to open new stores in emerging international markets.

Four years later, it was announced that 100% of all Versace family and Blackstone shares had been sold to Michael Kors Limited (now Capri Holdings Limited).

The acquisition formed a new global luxury fashion group consisting of Michael Kors, Jimmy Choo, and Versace. Donatella Versace is still involved with the company today and serves as its chief creative officer.

Key takeaways

  • Versace is an Italian luxury fashion company that was founded in 1978 by Gianni Versace and headquartered in Milan. Versace is known for its bold, colorful designs and use of luxurious materials in its ready-to-wear and related accessories.
  • Versace was one of the only fashion designers of the time to control every aspect of their brand. Over the 80s and 90s, he build a fashion empire based on sensual ensembles that included PVC baby-doll dresses and silver-mesh togas. He also used his connections in the music industry to promote the brand.
  • Versace passed away in 1997 and as profits started to dwindle in the 2000s, it was restructured as Versace Group. In 2018, it was announced that 100% of all Versace family and Blackstone shares had been sold to Michael Kors Limited (now Capri Holdings Limited) to form a new global luxury fashion group.

Key Highlights

  • Versace Ownership and Acquisition:
    • Capri Holdings Acquisition: Capri Holdings acquired Versace for over $2 billion in 2018. Capri Holdings also owns Jimmy Choo and Michael Kors.
    • Revenue and Ownership: Versace generated over a billion dollars in revenue in 2022. Capri Holdings is mainly owned by John D. Idol, its chairman and CEO, who also serves as CEO of Michael Kors.
    • Top Institutional Investors: Major institutional investors in Capri Holdings include FMR (Fidelity), The Vanguard Group, and BlackRock.
  • Origin and Founding:
    • Founding Year and HQ: Versace, an Italian luxury fashion company, was founded in 1978 by Gianni Versace and is headquartered in Milan.
    • Distinctive Style: Versace is renowned for its bold, colorful designs and the use of luxurious materials in its ready-to-wear fashion and accessories.
  • Early Years and Establishment:
    • Apprenticeship and Passion: Gianni Versace developed a passion for fashion while apprenticing under his dressmaker mother.
    • Move to Milan: In the early 1970s, he moved to Milan, freelancing for various fashion houses and honing his skills.
    • Dream Realized: In 1978, with funding from the Girombelli family, Versace opened his first boutique in Milan, joined by his brother Santo and sister Donatella.
  • Expansion and Innovation:
    • Business Mastery: Versace controlled every branding and marketing facet, setting himself apart.
    • Bold and Innovative Designs: Over the 80s and 90s, he crafted an empire with iconic pieces like PVC baby-doll dresses and silver-mesh togas.
    • Multifaceted Expansion: The brand expanded into accessories, furniture, and fine China, leveraging music industry connections for marketing.
  • Celebrity Endorsements and Logo Creation:
    • Music Industry Synergy: Versace pioneered celebrity endorsements, collaborating with stars like Elton John and Madonna to bridge fashion and music.
    • Medusa Logo: In 1993, the iconic Versace logo featuring the head of Medusa was born, inspired by Gianni’s childhood memories.
  • Transition and Legacy:
    • Gianni Versace’s Passing: In 1997, Gianni Versace tragically passed away, leaving a legacy of refined yet colorful work and a brand diversification into various products.
    • Family Involvement: Sister Donatella became creative director, brother Santo became CEO, and Allegra Versace inherited a 50% stake.
  • Restructure and Acquisition:
    • Company Restructure: In the 2000s, restructuring was initiated by CEO Fabio Massimo Cacciatori, followed by Giancarlo di Risio.
    • Blackstone Stake and Michael Kors Acquisition: Blackstone purchased a 20% stake in 2014. In 2018, all Versace family and Blackstone shares were acquired by Michael Kors Limited (now Capri Holdings Limited).
  • Current Status:
    • Global Luxury Fashion Group: The acquisition formed a global luxury fashion group comprising Michael Kors, Jimmy Choo, and Versace.
    • Donatella Versace’s Role: Donatella Versace remains actively involved as the chief creative officer of the company.

Related To Capri Holdings

Capri Holdings Revenue

capri-holdings-revenue
Capri Holdings’ revenue increased from $4.72 billion in 2018 to $5.24 billion in 2019. The revenue continued to rise in 2020, reaching $5.55 billion. In 2021, the revenue decreased to $4.06 billion, a significant drop from the previous year. However, in 2022, the revenue rebounded, growing to $5.65 billion.

Capri Holdings Profits

capri-holdings-profits
In 2018, the net income was $592 million. In 2019, it slightly decreased to $543 million. The net income took a significant hit in 2020, resulting in a loss of $223 million. In 2021, the company still experienced a net loss, though smaller, of $62 million. By 2022, the net income rebounded significantly to $822 million.

Versace Revenue

versace-revenue

Versace Profits

versace-profits
In 2020, the net income was a loss of $8 million. The net income turned positive in 2021, reaching $21 million. In 2022, Versace’s net income increased significantly to $185 million.

Jimmy Choo Revenue

jimmy-choo-revenue
In 2020, the revenue was $555 million. The revenue decreased in 2021 to $418 million. However, in 2022, Jimmy Choo’s revenue increased significantly to $613 million.

Jimmy Choo Profits

jimmy-choo-profits
In 2020, the company experienced an operating loss of $13 million. The operating loss increased in 2021 to $55 million. However, in 2022, Jimmy Choo’s operating performance improved, resulting in an operating income of $13 million.

Michael Kors Revenue

michael-kors-revenue

Michael Kors Profits

michael-kors-profits

Related Visual Resources

Slow Fashion

slow-fashion
Slow fashion is a movement in contraposition with fast fashion. Where in fast fashion, it’s all about speed from design to manufacturing and distribution, in slow fashion, quality and sustainability of the supply chain are the key elements.

Patagonia Business Model

patagonia-business-model
Patagonia is an American clothing retailer founded by climbing enthusiast Yvon Chouinard in 1973 who saw initial success by selling reusable climbing pitons and Scottish rugby shirts. Over time Patagonia also became a fashionable brand also for its focus on slow fashion. Indeed, the company sells high-priced clothing items built to last which it will repair for free.

Patagonia Organizational Structure

patagonia-organizational-structure
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.

Fast Fashion

fast-fashion
Fash fashion has been a phenomenon that became popular in the late 1990s and early 2000s, as players like Zara and H&M took over the fashion industry by leveraging on shorter and shorter design-manufacturing-distribution cycles. Reducing these cycles from months to a few weeks. With just-in-time logistics and flagship stores in iconic places in the largest cities in the world, these brands offered cheap, fashionable clothes and a wide variety of designs.

Inditex Empire

inditex-fast-fashion-empire
With over €27 billion in sales in 2021, the Spanish Fast Fashion Empire, Inditex, which comprises eight sister brands, has grown thanks to a strategy of expanding its flagship stores in exclusive locations around the globe. Its largest brand, Zara, contributed over 70% of the group’s revenue. The country that contributed the most to the fast fashion Empire sales was Spain, with over 15% of its revenues.

LVMH Business Model

lvmh-group-business-model
LVMH is a global luxury empire with over €79 billion ($83 billion) in revenues for 2022, spanning several industries: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing. It comprises brands like Louis Vuitton, Christian Dior Couture, Fendi, Loro Piana, and many others.

Kering Business Model

kering-business-model
Kering Group follows a multi-brand business model strategy. The central holding helps the brands and Houses part of its portfolio leverage economies of scale while creating synergies. At the same time, those brands are run independently. Kering is today a global luxury brand that made over €20 billion in revenue based on this multi-brand strategy. Within Kering Group are brands like Gucci, Bottega Veneta, Saint Laurent, and many more—the primary operating segments based on luxury and lifestyle.

Kering Brands

kering-brands
Kering is a luxury goods multinational founded in France by François Pinault in 1963. The company, which initially specialized in timber trading, grew via acquisitions and was listed on the Paris Stock Exchange in 1988. Two years later, Kering merged with a French conglomerate interested in furniture, department stores, and bookstores.

Ultra Fast Fashion

ultra-fast-fashion
The Ultra Fashion business model is an evolution of fast fashion with a strong online twist. Indeed, where the fast-fashion retailer invests massively in logistics and warehousing, its costs are still skewed toward operating physical retail stores. While the ultra-fast fashion retailer mainly moves its operations online, thus focusing its cost centers on logistics, warehousing, and a mobile-based digital presence.

ASOS Business Model

asos-business-model
ASOS is a British online fashion retailer founded in 2000 by Nick Robertson, Andrew Regan, Quentin Griffiths, and Deborah Thorpe. As an online fashion retailer, ASOS makes money by purchasing clothes from wholesalers and then selling them for a profit. This includes the sale of private label or own-brand products. ASOS further expanded on the fast fashion business model to create an ultra-fast fashion model driven by short sales cycles and online mobile e-commerce as the main drivers.

Real-Time Retail

real-time-retail
Real-time retail involves the instantaneous collection, analysis, and distribution of data to give consumers an integrated and personalized shopping experience. This represents a strong new trend, as a further evolution of fast fashion first (who turned the design into manufacturing in a few weeks), ultra-fast fashion later (which further shortened the cycle of design-manufacturing). Real-time retail turns fashion trends into clothes collections in a few days or a maximum of one week.

SHEIN Business Model

shein-business-model
SHEIN is an international B2C fast fashion eCommerce platform founded in 2008 by Chris Xu. The company improved the ultra-fast fashion model by leveraging real-time retail, quickly turning fashion trends in clothes collections through its strong digital presence and successful branding campaigns.

Zara Business Model

zara-business-model
Zara is a brand part of the retail empire Inditex. Zara is the leading brand in what has been defined as “fast fashion.” With almost €20 billion in sales in 2021 (comprising Zara Home) and an integrated retail format with quick sales cycles. Zara follows an integrated retail format where customers are free to move from physical to digital experience.

Wish Business Model

wish-business-model
Wish is a mobile-first e-commerce platform in which users’ experience is based on discovery and customized product feed. Wish makes money from merchants’ fees and advertising on the platform, and logistic services. The mobile platform also leverages an asset-light business model based on a positive cash conversion cycle where users pay in advance as they order goods, and merchants are paid in weeks.

Poshmark Business Model

poshmark-business-model
Poshmark is a social commerce mobile platform that combines social media capabilities with its e-commerce platform to enable transactions. It makes money with a simple model, where for each sale, Poshmark takes a 20% fee on the final price for sales of $15 and over and a flat rate of $2.95 for sales below that. Its gamification elements and the tools offered to sellers are critical to the company’s growth as a mobile-first platform.

Read Next: Zara Business Model, Inditex, Fast Fashion Business Model, Ultra Fast Fashion Business Model, SHEIN Business Model.

Other business resources:

About The Author

Scroll to Top
FourWeekMBA