Capri Holdings Limited, the parent company of luxury labels Jimmy Choo, Versace, and Michael Kors, is facing challenges after missing its quarterly profit estimate.
Overall, the company’s revenue increased. However, sales for Michael Kors, Capri Holdings’ largest label, decreased from 1.13 billion USD to 1.08 billion USD. As mentioned in a report from WWD, the company’s chairman and chief executive officer, John D. Idol, credits this fall to the political conflict in Hong Kong, which has affected a variety of international retailers—including those in the fashion industry.
Specifically speaking, the protests in Hong Kong have directly affected the region’s business with Versace, as many Chinese consumers reacted to an “incorrectly labeled” T-shirt from the brand. Earlier this year, the Milan-based brand faced criticism for a T-shirt that addressed Hong Kong and Macau as separate regions from the country. As a result, the luxury fashion brand lost its first Asia brand ambassador Yang Mi along with many of its consumers in the region.