The insight: Capri Holdings will use some of the cash from its $1.38 billion sale of Versace to revive Michael Kors, the company said, as it doubles down on its flagship brand following its failed merger with Tapestry.

A failed game plan: CEO John Idol’s plans to build a luxury conglomerate capable of rivaling European heavyweights are now dead in the water, as stiff luxury headwinds coupled with strategic missteps force Capri to pare its ambitions.

• The company is also hunting for a buyer for Jimmy Choo, although the brand’s attractiveness is severely hampered by consumers’ preference for sneakers over its trademark heels—not to mention growing economic uncertainty.
• Offloading Jimmy Choo would free Capri to devote its resources entirely to Michael Kors, which is in considerable need of reinvention following a failed push upmarket.