Third quarter revenue growth for Capri Holdings

Worldwide
Published:  06 February, 2020
Credit: Michael Kors

The New York headquartered fashion Group, which owns the Jimmy Choo, Michael Kors and Versace brands, has posted a 9.2% revenue growth for the third quarter if its fiscal 2020, ended December 28, 2019.

Capri Holdings said it has repaid approximately US$300 million of debt in the third quarter, and approximately US$500 million year-to-date. Group revenue totalled US$1.571 billion, up 9.2% year-on-year. Gross profit was US$932 million in the quarter and gross margin was 59.3%, up from US$873 million and 60.7% in the prior year. Net income came in at US$210 million, or US$1.38 per diluted share compared with US$200 million, or US$1.33 per diluted share in the same quarter of the previous fiscal year.

Revenue for the Versace label totalled US$195 million in the quarter and, according to the Group, comparable store sales increased in the mid-single digits on a constant currency basis compared with stand-alone results from the prior year. Versace is said to have continued to deliver double digit comparable store sales growth in the Americas and EMEA. The label’s operating loss was US$12 million and operating margin was 6.2% in the quarter.

Jimmy Choo revenue was US$165 million, up 1.9% year-on-year on both a reported and constant currency basis, but comparable store sales were flat on a constant currency basis, despite increasing in the Americas and EMEA. Michael Kors revenue totalled US$1.211 billion, down 5.1%. On a constant currency basis, comparable store sales decreased in the low single digits, according to Capri Holdings.