After months in the red, Capri Holdings Limited [NYSE:CPRI] is now trading in a bullish channel. In the last few days of trading, the stock’s momentum has been driven by a positive speech by the CEO during the Goldman Sachs Annual Global Retailing Conference. In his speech, he stated that Versace was among the company’s best assets.
He stated that Versace has been holding up strongly despite everything that has been happening in the world over the year few months. He added that one of Versace’s key strengths was the vision of its founder, Donatella, which has become a key pillar in the company’s marketing messaging, and its focus on service delivery. More importantly, he noted that ongoing pandemic had not changed the company’s goals.
For instance, he stated that the company was in a mission to renovate all its stores all across the world. He added that they would continue to focus on Versace’s accessories business, where it still has a low presence compared to its peers.
He added that the company was on a drive to ensure that Versace was a top competitor in the luxury accessories business. The CEO also reiterated the company’s drive to grow Versace into a $2 billion business, and that so far they were happy with the progress they had made towards the achievement of this goal.
Besides the concrete plans that the company has in place for the development of Versace as a key revenue driver, external factors are in favor of this company at this moment. One of the most important factors in favor of this company is the increased hope of a COVID-19 vaccine.
Several companies are in late stage tests of the COVID-19 vaccine. One of the most promising vaccines is the one being developed by Oxford University and AstraZeneca. This vaccine is in late stage development and has been restarted again after being paused.
Testing too is getting better with several companies now in advanced stages of developing a saliva-based COVID-19 rapid tests. All this points to a scenario where the global economy could return to its pre-COVID-19 performance by the end of the year. This would have a positive effect on the fashion industry, and more so on the valuation of big industry players such as Capri Holdings that has globally acclaimed brands such as Versace and Michael Kors under its fold.
About Capri Holdings Limited
Capri Holdings Limited is a global fashion design and distribution company. It is headquartered in London, United Kingdom.