Capri’s revenue declines 17% in third quarter

Worldwide
Published:  11 February, 2021

Total revenue for the owner of the Versace, Michael Kors and Jimmy Choo brands decreased 17.1% in the third quarter of the Group’s fiscal 2021, to US$1.3 billion.

On a constant currency basis, Capri’s total revenue decreased 19.5% in the third quarter. Gross profit was US$848 million and gross margin was 65.1%, compared with US$932 million and 59.3% in the same quarter of the prior fiscal year. Income from operations totalled US$167 million and operating margin was 12.8% compared with US$205 million and 13% a year earlier. Net income came in at US$179 million, or US$1.18 per diluted share, down from US$210 million, or US$1.38 per diluted share in the prior year. According to Capri Holdings, e-commerce sales improved sequentially, increasing 65%, while retail sales in Asia across all luxury houses were led by double digit growth in Mainland China. Versace recorded double-digit global retail in the period.

Versace recorded revenue of US$195 million in the third quarter, flat compared with the prior year. On a constant currency basis, total revenue decreased 6.7%. The label’s operating income amounted to US$13 million and operating margin was 6.7% compared with a loss of US$12 million and operating margin of (6.2)% in the prior year. Revenue for the Jimmy Choo brand amounted to US$121 million, down 26.7% year-on-year, operating loss was US$8 million and operating margin was (6.6)%, compared with an operating income of US$9 million and operating margin of 5.5% in the same quarter of the Group’s fiscal 2020. Michael Kors revenue was US$986 million, down 18.6%, while operating income totalled US$281 million and operating margin was 28.5%, compared with US$288 million and 23.8% in the prior year.