The company confirmed it will use proceeds from the sale to repay most of its debt, significantly reducing leverage and strengthening its balance sheet — a move first outlined in its Q2 fiscal 2026 earnings release earlier this month.
Chairman and CEO John D Idol said the transaction provides Capri with “greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future.” He added that the group remains on track to stabilise performance in fiscal 2026 and return to growth in fiscal 2027.
Idol also paid tribute to the Versace team, including Donatella Versace, Dario Vitale, and Emmanuel Gintzburger, thanking them for their leadership and expressing confidence that Prada is an “ideal partner to guide this celebrated luxury house into its next era of growth.”
The divestiture follows a turbulent period for Capri, which saw the termination of its proposed merger with Tapestry earlier this year. With the Versace sale now finalised, Capri’s attention turns to executing its long-term strategy to revitalise Michael Kors and Jimmy Choo, as well as to implementing its newly authorised US$1 billion share repurchase programme, expected to begin in fiscal 2027.
