Capri Holdings, the expanding U.S. fashion group previously known as Michal Kors, said that it has signed a definitive agreement to buy an Itailan shoe manufacturer, Alberto Gozzi. Capri said that, in the immediate future, Gozzi will develop and manufacture shoes for its Jimmy Choo and Versace brands, starting immediately. At a later date, it will also produce Michael Kors footwear.
The company, based in Chiesina Uzzanese near the Tuscan town of Pistoia, has been the property of the Gozzi family since its founding in 1974. It specializes in high-end shoes produced for top luxury brands and under its own brands, Alberto Gozzi and 181. It reportedly operates out of a factory measuring 1,500 square meters, indicating that it would be able to process only part of Capri's shoe production. Further information about the company could not be obtained by press time.
The deal is expected to close during Capri's fourth fiscal quarter, which ends in March. No financial details were available.
John D. Idol, chief executive of Capri, said the acquisition “allows us to further align with the industry's best practices,” evidently pointing to the fact that major luxury brands like Gucci and Louis Vuitton own some of the manufacturing facilities that make their products.
In acquiring Jimmy Choo in 2017 for $1.2 billion and Versace the next year for nearly $2.2 billion, Idol expressed a wish to transform the former Michael Kors into a global luxury goods conglomerate like Kering or LVMH. The company's sales rose by 5.1 percent to $1.4 billion in the latest financial quarter, largely due to the takeover of Versace, but its net income dropped sharply to $73 million.