American brand, Michael Kors has welcomed Joshua Schulman as its new chief executive officer. He will also succeed John Idol as chief executive officer of Capri Holdings in September 2022.
In this new position, Schulman will oversee all aspects of the Michael Kors brand internationally while reporting directly to Idol, the current CEO of Capri Holdings. The latest move by the luxury group is in line with the repositioning of Michael Kors as a luxury brand. For many years, the brand’s image has been closely associated with outlet malls and discounted prices but works are in place to shift this perception and elevate the brand to the likes of luxury labels within the LVMH and Kering groups.
Schulman is a veteran within the luxury sector, having overseen the turnaround at Coach, the former Gucci executive and Bergdorf Goodman CEO was previously the CEO of Jimmy Choo as well. During his tenure at Coach, he expanded the brand’s offerings, increased digital sales and market share within China. The experiences that he has will be useful for Michael Kors and Capri Holdings when he takes over next year.
In its recent financial statement, Capri Holdings reported that revenue for its three brands (Michael Kors, Versace and Jimmy Choo) has dropped by 27 per cent to US$4.1 billion in the year ending in March. However, Michael Kors is seeing an uptick in its operating margin and sales. This is a result of various changes within the company such as cutting back on inventory, reducing discounts, closing stores, and pulling out of some third-party retailers while raising prices. According to Capri chief operating officer and chief financial officer Tom Edwards, Michael Kors saw its “signature” lines commanding greater sales (36 per cent of total revenue).
The aim for Capri Holdings is to increase its revenue to US$7 billion after 2024. To do so it has a strategy of doubling shares of e-commerce sales and in Asia, expanding its men’s category and optimising its global store network. These goals are something that Schulman is well versed in.
Ike Boruchow of Wells Fargo says, “Given Mr. Schulman’s strong track record (particularly as the president of Coach) and a Michael Kors business that has been somewhat volatile through the years, we believe investors will view the announcement as a positive to the CPRI [Capri Holdings Ltd.] story. Mr. Schulman was instrumental in Coach’s turnaround and is an admired and respected leader within the fashion industry, and we believe he is the ideal candidate to lead CPRI into the next stage of growth”
“I look forward to partnering with Josh on the overall strategic direction for the group as well as on potential strategic acquisitions,” Idol said in a statement.
Under the leadership of Idol, Capri Holdings has become one of the largest and most profitable luxury groups. His strategic foresight helped build the foundation for the conglomerate and there is no better time to pass the baton to another well-respected leader than during such an exciting time where the luxury sector is slowly picking up again.
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