Michael Kors’ aggressive price hikes turned away core shoppers, forcing a 30% to 40% price cut on clothing this spring|Harrison Keely|CC BY 4.0

Luxury fashion giant Capri Holdings suffered a significant blow after CEO John Idol acknowledged costly mistakes in reviving Michael Kors and Versace brands that caused a ~12% decline in quarterly revenue during the holiday season.

The company wrote down $600 million in value from its Versace and Jimmy Choo businesses, sending Capri’s stock down 10% on Wednesday. The stock is down 43% since its $2.12 billion acquisition of Versace in 2018.

Capri’s shift toward “quiet luxury” items alienated many Versace shoppers, resulting in a 15% drop in sales. Meanwhile, Michael Kors’ aggressive price hikes turned away core shoppers, forcing a 30% to 40% price cut on clothing this spring.

Looking ahead, the fashion conglomerate now plans a “fun and elegant” reset, featuring lower-priced accessories and shoes that aim to attract a wider audience.

Following the FTC’s block of Capri’s $8.5 billion merger with Coach owner Tapestry, speculation grew over a Versace or Jimmy Choo sale. Although CEO Idol denies an active sell-off, he says that Capri is “always going to listen to interested parties.”