- In an about-face, John Idol is staying on as chair and chief executive at Capri Holdings, the company said in a press release Monday.
- Joshua Schulman, who has led the Michael Kors brand since August, when he was also named Idol's successor as company CEO, is leaving the company instead, per the release.
- Capri, which also runs Versace and Jimmy Choo, didn't immediately return requests for more information regarding the decision. Last month, the company reported Q3 revenues rose 24% year over year to $1.6 billion, with net income up 80% to $322 million.
Observers hailed Schulman's planned promotion last year, with Wells Fargo analyst Ike Boruchow calling him "the ideal candidate." He was to take the reins in September.
For some reason, that's now out the window, and Schulman is leaving a few months before he was to take over. Credit Suisse analyst Michael Binetti on Monday warned that "the vague nature of the departure will be viewed with skepticism/concern."
Schulman's success in rehabilitating Tapestry's Coach brand a few years ago was a major reason for the positive view of his appointment as Capri's next chief executive, Binetti also noted in emailed comments. Schulman has extensive experience in the luxury space and previously led Jimmy Choo.
In a statement, Idol said that Michael Kors, whose struggles resemble Coach's past battle with discounts and brand degradation, "has a talented management team in place that will continue to execute on its strategic initiatives."
"The strategies that we put in place prior to the pandemic have been generating strong consumer demand and driving higher profitability as we continue to elevate brand positioning," Idol also said. "The Board and I remain extremely optimistic about the future growth of Michael Kors and Capri Holdings. We are grateful to Josh for his contributions to our organization."