After serving for just seven months as chief executive officer at Michael Kors, Joshua Schulman has announced to have resigned from the company even though he was on the way to getting a giant promotion.
The sudden announcement has led to a drop in the shares value of Michael Kors' owner Capri Holdings, which simultaneously owns Versace and Jimmy Choo. About 12 percent fall has been witnessed.
Meanwhile, the parent company's chief executive John Idol said they are positioned well to achieve long-term earnings and revenue growth and he will be leading Capri Holdings with commitments and drive success in the future.
Schulman joined Michael Kors last August. He earlier had senior positions at Bergdorf Godman, Jimmy Choo and Gucci. There is no hint why he stepped down and the announcement came as a surprise to everyone.
Regulatory filing reveals Schulman's base salary was $1.3 million for two years along with $5.2 million for non-compete obligations. Matthew Boss, an analyst at JP Morgan, said there is no indication that his stepping down is related to any disciplinary action with respect to his conduct in the company.
However, Howard Smith, a top executive at Ralph Lauren was forced to move out of the company about a week ago for violating the ethics code. He was the chief commercial officer as well as the executive vice president of the brand.
Idol added that Michael Kors is equipped with a talented team in the management and the board is optimistic about both Capri Holdings and Michael Kors.
About Michael Kors
Michael Kors was founded in 1981 by a fashion designer with the same name. It is a big name in the fashion industry for designing award-winning luxury accessories as well as ready-to-wear dresses. It deals in a wide range of products including jewelry, watches, footwear, eyewear and fragrance products. It has stores in several cities including New York, Chicago, Beverly Hills, Paris, Milan, Tokyo, Seoul, Dubai, Istanbul, Munich, Rio de Janeiro, Shanghai and Hong Kong.
Owner Michael Kors was born in New York in 1959 as Karl Anderson and currently is the CCO and honorary chairman in his company. He was inclined towards fashion at a very young age and redesigned the wedding dress of his month when he was just 5. He started designing and selling clothes as a teenagerand under the brand name Iron Butterfly.
He learned acting but discontinued it at the age of 14 to focus more on fashion designing. His name has been named in a couple of songs lately including the songs From Time of Drake and Dance of Nicki Minaj. He has received several rewards and awards.