Better results than expected for Capri in Q4 2022

Published:  07 June, 2022
Credit: Jimmy Choo

The fashion group, which owns luxury brands such as Versace, Michael Kors and Jimmy Choo, has reported its fourth-quarter 2022 financial results.

In the fourth quarter of the 2022 financial year, Capri Holdings achieved revenue growth of 24.6% to a total of US$1.49 billion.

Gross profit for the period was US$956 million and gross margin was 64.1%, compared to US$737 million and 61.6% in the prior year. Net income was US$81 million for the fourth quarter.

Versace achieved revenue of US$315 million in the quarter, a 34% growth on the previous year. Operating income for the brand was US$50 million and operating margin was 15.9%.

For Jimmy Choo, fourth quarter revenue increased 25.8% to US$156 million. The brand had an operating loss of US$15 million and an operating margin of -9.6%.

Meanwhile, Michael Kors brought in revenue of US$1.02 billion during the period, an increase of 21.8%. Operating income was US$210 million and operating margin was 20.6%.

Capri Chairman and CEO John D Idol said: “I am proud of the progress we made across all our luxury houses. Revenue and earnings results significantly exceeded our original expectations. Capri Holdings achieved the highest revenue, gross margin and earnings per share in the company’s history. Additionally, we generated strong free cash flow and returned US$650 million to shareholders in fiscal 2022.

“Our ability to deliver record results while navigating the challenges of an unprecedented global pandemic is a testament to the strength of our brands and the success of our strategic growth initiatives. Most importantly, we would not have been able to achieve these results if not for the hard work, dedication and resiliency of our teams across the globe."