“By fiscal year 2023 (April 1, 2022 – March 31, 2023, ed.), we expect revenues and earnings per share to exceed pre-pandemic levels”. These were John D. Idol’s, CEO of Capri Holdings, words in presenting the financial results for the third quarter of 2020/2021. In summary: revenues higher than expectations, but lower than estimates. The US group, in particular, has to thank Versace, who drove the sales.
Capri thanks Versace
Capri Holdings closed its third quarter with revenues with 1.3 billion dollars, -17.1% at current exchange rates and -19.5% at constant exchange rates. The estimate of analysts cited by Reuters was 1.33 billion dollars (IBES data from Refinitiv). Online sales grew by 65%, as did offline sales in Asia, for all the brands owned by the group. It has to thanks Versace, who had revenues for 195 million dollars, equal to the previous year (-6.7% at constant exchange rates) and capable of generating an operating profit. Jimmy Choo‘s revenues were 121 million dollars: -26.7% at current exchange rates and -27.3% at constant exchange rates. Michael Kors generated 986 million dollars, -18.6% at current exchange rates and -20.6% at constant exchange rates.
The comment
“By assessing the situation since the start of the pandemic, we are encouraged by the performance of all our houses. Because they demonstrate the strength of our portfolio, as well as the resilience and flexibility of our businesses,” commented Idol. “We are pleased with the third quarter results as revenues exceeded our expectations. Earnings were significantly higher than expected, driven by a significant expansion of gross margin”. Capri closed the last 9 months of the year with revenues of 2.863 billion dollars (-34.3% at current exchange rates) of which: Versace 483 million dollars (-23.2%), Jimmy Choo 294 million dollars (-34.4%) ) and Michael Kors 2,086 dollars (-36.4%).
Images from michaelkors.it (left) and versace.com (right)
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