Capri Holdings revenue remains flat in Q3

Worldwide
Published:  15 February, 2019

Capri Holdings, owner of Michael Kors, Jimmy Choo and Versace fashion labels, has posted total revenue of US$1.44 billion for the third quarter of its fiscal 2019, flat compared with the previous year.

For the quarter ending December 29, 2018, the Group’s gross profit totalled US$873.2 million and gross margin was 60.7%, compared with US$884 million and 61.4% in the prior year. Adjusted gross profit was US$874.1 million and adjusted gross margin was 60.8%, against US$885.6 million and 61.5% in the in the same quarter of its previous fiscal year. Net income was US$199.6 million in the quarter, or US$1.33 per diluted share compared with US$219.4 million, or US$1.42 per diluted share in the prior year, while adjusted net income was US$264.7 million, or US$1.76 per diluted share, compared with US$273.4 million or US$1.77 per diluted share a year ago.

Revenue for Michael Kors in the quarter totalled US$838 million (-1%), and comparable store sales decreased -2.4%, in line with expectations, according to the Group. The label’s retail operating income was US$149.9 million and operating margin was 17.9%, compared with US$180.4 million and 21.3% in the prior year. Jimmy Choo, which was acquired in November 2017, recorded revenue of US$161.6 million; compared to Jimmy Choo stand-alone results from the prior year, revenue increased mid-single digits, according to Capri Holdings. The label’s operating income totalled US$5.5 million in the quarter.

“We are extremely pleased to have recently renamed our Company Capri Holdings Limited and completed the acquisition of Versace”, said John D. Idol, Chairman and CEO, Capri Holdings. “For full year fiscal 2019, our luxury group is expected to deliver both double digit revenue and adjusted earnings per share growth. Taken together, we believe our three iconic, founder-led fashion brands position Capri Holdings to accelerate revenue to US$8 billion and deliver multiple years of earnings growth.”