Capri Holdings fourth-quarter revenue down 11.3%

Published:  08 July, 2020

The owner of the Jimmy Choo, Michael Kors and Versace fashion brands has reported an 11.3% decline in revenue for its fourth quarter, but a 6% revenue growth for its full year ended March 28, 2020.

For the fourth quarter, Capri Holdings’ total revenue amounted to US$1.2 billion, down -11.3% year-on-year. Gross profit was US$631 million and gross margin was 52.9%, compared with US$793 million and 59% in the prior year. Loss from operations totalled US$536 million against an income of US$40 million in the same quarter of the previous year. Net loss for the quarter was US$551 million compared with a net income of US$19 million in the prior year. The Versace brand posted revenue of US$213 million in the period, up +55.5% both on a reported and constant currency basis., and operating loss totalled US$2 million. Jimmy Choo’s revenue amounted to US$107 million, down 23% year-on-year and operating loss was US$23 million for the quarter. Michael Kors revenue totalled US$872 million (-18.4%), with operating income at US$139 million and operating margin at 15.9%, compared with US$166 million and 15.5%, respectively, for the same quarter in the prior year.

In response to the global pandemic, Capri Holdings said that actions to reduce expenses and maintain a strong liquidity position included reduced operating expenses by approximately US$500 million; diligently managing inventory, generating approximately US$400 million of cash flow; reduced capital expenditures by approximately US$150 million; and suspension of the remaining US$400 million under its current share repurchase programme.