- Shares of Versace parent Capri Holdings sank Monday for a second-straight session following backlash over a t-shirt that appeared to list Hong Kong as a country independent from China.
- Donatella Versace, the brand’s chief creative officer, had apologized on Sunday in a signed tweet.
- This happened amid intense protests in Hong Kong as the city fights for independence from China.
- Watch Capri Holdings trade live on Markets Insider.
Luxury brand Versace sparked anger in China for selling a t-shirt that listed Hong Kong as a separate country.
The backlash sent shares of Capri Holdings, its parent company, down 5% Friday, erasing gains from the company’s first-quarter earnings beat Wednesday.
On Monday, shares of Capri Holdings fell by as much as 5% after Donatella Versace issued an apology for the gaffe through a signed tweet.
"Never have I wanted to disrespect China’s national sovereignty and this is why I wanted to personally apologize for such inaccuracy and for any distress that it might have caused," the tweet send on Sunday said.
The t-shirt in question was recalled in July and unsold shirts have been destroyed, the company said.
The controversy comes at a time when tensions between Beijing and Hong Kong are high as the city calls for independence from the Chinese government. Protests have been ongoing for more than ten weeks and have escalated recently.
On Monday, authorities at Hong Kong International Airport stopped all flights as protesters occupied the premises for a fourth day. Shares of Cathay Pacific sank as much as 4.9% to decade lows after China demanded the airline prohibit protesting employees from flying to the mainland.
Michael Kors Holdings acquired Versace at the end of 2018 for more than $2.1 billion and changed its name to Capri Holdings. The luxury brand joined Jimmy Choo and Michael Kors in the Capri Holdings portfolio.
Shares of Capri Holdings are down 25% year-to-date.
- More than 7,800 stores are closing in 2019 as the retail apocalypse drags on — here’s the full list
- ‘Not investing in China is very risky’: Billionaire investor Ray Dalio explains why he’s still all in despite recent trade-war fireworks
- Obama advisor Larry Summers warns the world is at ‘most dangerous financial moment’ since 2009 as global markets reel from trade war escalation