Capri Holdings CEO Reports Strong Progress for Jimmy Choo Brand
Capri Holdings Ltd. Chief Executive John Idol expressed confidence in Jimmy Choo’s performance trajectory during Monday’s presentation at the Citi Global Consumer & Retail Conference, highlighting the luxury footwear brand’s sustained momentum.
The executive revealed that fourth-quarter comparable store sales have shown growth, potentially marking the third consecutive quarter of positive comparable sales performance for the brand. Wholesale operations have demonstrated particularly strong results, with North American markets experiencing total brand growth exceeding 20 percent in the most recent quarter.
Idol outlined how the company has successfully modernized its consumer engagement approach by leveraging influencer partnerships and social media platforms more strategically. This digital-focused methodology, previously implemented across the Michael Kors brand portfolio, has yielded notable expansion among Generation Z and millennial demographics.
Brand Repositioning Strategy
The CEO described a fundamental shift in Jimmy Choo’s brand identity, moving away from its traditional runway ready and glamour positioning toward a concept of the effortlessly alluring woman. This strategic pivot reflects changing consumer preferences and lifestyle integration requirements for luxury brands.
Rather than positioning Jimmy Choo exclusively for formal occasions such as weddings or glamorous events, the marketing strategy now encompasses casual social situations, weekend activities, and everyday dining experiences. The brand has simultaneously expanded its casual footwear offerings to support this broader market approach.
Product Portfolio Expansion
Jimmy Choo has diversified its handbag collection, introducing a substantial range of products priced at $1,500 and below, while maintaining premium options above that price point. This tiered pricing strategy aims to capture different market segments within the luxury accessories space.
Currently operating as an approximately $800 million business, Idol suggested potential for further growth if current performance trends continue, though specific expansion targets remain undefined.
Acquisition History and Future Plans
Capri Holdings, formerly known as Michael Kors Holdings Ltd., acquired Jimmy Choo in November 2017 for $1.2 billion. The original acquisition strategy included ambitious plans to scale the brand toward $1 billion in annual sales while expanding into men’s luxury footwear and broader luxury accessories markets.
Despite recent speculation regarding potential sale opportunities and reported interest from brand co-founder Tamara Mellon, Idol firmly reiterated that Jimmy Choo remains off the market. He emphasized the brand’s value as a strategic asset within Capri’s portfolio during his investor presentation.
Financial Performance and Outlook
While Jimmy Choo previously operated with double-digit profit margins, the brand currently experiences modest losses. However, management anticipates a return to profitability with operating margins between 10 and 15 percent as operational improvements take effect.
The global retail footprint consists of 230 stores, with plans to optimize this network to approximately 200 locations over time. Increased store productivity directly impacts profitability, making the recent comparable sales growth particularly significant for future earnings potential.
Market Positioning and Pricing
Idol noted that many competitors have shifted their footwear pricing into the $1,000 to $1,500 range, while Jimmy Choo maintains a broader spectrum from $495 entry-level products to $895 evening wear options, with sneakers starting at $550.
This pricing strategy provides wholesale partners with accessible luxury options for customers seeking premium products without extreme price points, particularly relevant given current consumer spending caution.
The company plans to expand accessories from their current 25 percent share of business to approximately 40 percent over time, as this category generates higher profit margins compared to footwear.
Leadership Changes
In related news, Jimmy Choo announced the appointment of Andy Holmes as senior vice president, CFO and operations, effective following Richard Kozlowski’s retirement at the end of March.
Following Prada’s completion of its $1.38 billion Versace acquisition in December 2025, Capri Holdings now focuses its operations on the Michael Kors and Jimmy Choo brands.