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Capri Holdings Ltd. has named Joshua Schulman chief executive of the Michael Kors brand and, effective September 2022, CEO of the entire company, which also includes the Versace and Jimmy Choo labels.
Schulman will succeed John Idol, who will become executive chairman when his successor assumes the CEO role.
Schulman joins from Tapestry Inc.
TPR,
where he was CEO of the Coach brand. Schulman is a veteran of the luxury space, having served as president of Bergdorf Goodman from 2012 to 2017; CEO of Jimmy Choo from 2007 to 2012, prior to becoming part of Capri
CPRI,
; and held positions at Yves Saint Laurent and Gucci.
The news sent Capri shares up 6.3% in Tuesday trading. Shares of Capri have surged 44.3% for the year to date while the benchmark S&P 500 index
SPX,
has gained 19.6%.
“Mr. Schulman was instrumental in Coach’s turnaround and is an admired and respected leader within the fashion industry, and we believe he is the ideal candidate to lead Capri into the next stage of growth,” wrote Wells Fargo analysts in a note.
Wells Fargo rates Capri shares overweight with an $80 price target.
Cowen analysts also highlight Schulman’s past work, while focusing on the continuing turnaround at the Michael Kors brand.
“We believe Capri is undergoing key transformations across each of its brands and Mr. Schulman is a timely addition to accelerate brand momentum and refresh at Michael Kors,” analysts said.
Cowen rates Capri stock outperform with a $75 price target.
BMO Capital Markets notes the possibility for further acquisitions at Capri.
“I look forward to partnering with Josh on the overall strategic direction for the group as well as on potential strategic acquisitions,” said Idol in a statement.
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With his luxury background, BMO analysts led by Simeon Siegel say Schulman comes to the company in a strong position.
“We reiterate Capri as one of our top ideas and expect Josh to begin an exciting next chapter building, off of John’s already compelling trajectory,” the note said.
BMO rates Capri outperform with a $75 price target.
