Capri Holdings (CPRI) - Get Capri Holdings Limited Report shares rose on Tuesday after the owner of the Michael Kors and Versace fashion brands said that Joshua Schulman will succeed John Idol as chief executive.
Schulman was named CEO of Michael Kors effective Tuesday. He will take over for Idol as CEO of Capri Holdings in September 2022, when Idol will become executive chairman.
Schulman joins Capri Holdings from Tapestry (TPR) - Get Tapestry, Inc. Report, where he was CEO of the Coach brand. Prior to his tenure at Coach, Schulman worked for Neiman Marcus Group, serving as president of Bergdorf Goodman.
Capri recently traded at $60.54, up 6.1%. The shares have jumped 29% in the past six months. Retail and luxury goods have been strong as the pandemic eased.
“Josh’s appointment is part of a thoughtfully planned leadership succession,” Idol said. “I look forward to partnering with Josh on the overall strategic direction for the group as well as on potential strategic acquisitions.”
Morningstar analyst David Swartz puts fair value for Capri at $47.
“While the company has a solid balance sheet and cash flows … we have been critical of some of the company’s past decisions,” he said on Tuesday.
And while "Kors is one of the best-selling handbag brands, we believe its oversupply and overexposure issues have impacted its brand value,” Swartz said.
“This is one of the primary reasons why we rate Capri as a no-moat firm. One of Schulman’s primary tasks as CEO of Kors and, later, CEO of Capri will be to improve pricing of Kors’s handbags and apparel.”