Online, China and Versace. Capri Holdings went beyond expectations in the second financial quarter, closed last September 26. “We are happy about these results as earnings and profits exceeded our expectations”, commented John D. Idol, Chief Executive Officer of the group controlling Michael Kors, Jimmy Choo and Versace. “Besides that, we are also drawing new buyers into all our fashion houses: in fact, looking at our database, our clients and buyers have been increasing in double figures. That is why we are more and more optimistic about the prospective business trend of luxury and fashion industry and Capri Holdings as well”.
Beyond expectations
At the end of the quarter, from July to September, Capri’s overall revenues amounted to 1.11 billion US dollars, that is, -23% at current rates of exchange compared to last year. Earnings dropped by 24.6% at fixed rates of currency exchange. Therefore, they went considerably beyond financial analysts’ expectations, which were about 924.9 million dollars, according to Ibes data provided by Refinitiv and reported by Reuters. In the first 6 months of the year, total revenues decreased by 44%. In the last three months, adjusted net income reached 137 million dollars (that is, 0.90 dollars per share), compared to 177 million dollars (that is, 1.16 dollars per share) of last year.
Versace (most of all)
Talking about brands, Versace made 195 million dollars, that is, -18.9%. Yet, despite that, Capri emphasized that global retail sales, carried out by the Italian fashion brand, turned out to be positive. Jimmy Choo overall revenues amounted to 122 million dollars (-6.4%), while Michael Kors made 793 million dollars (-27.9%).
Online and China
While releasing an announcement, Capri Holdings highlighted the performance achieved by online sales, which increased by about 60%. Likewise, retail sales in China enjoyed a boost regarding all the brands in the group’s portfolio.
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