Capri fourth quarter revenue and earnings exceed expectation

Worldwide
Published:  28 May, 2021
Credit: Jimmy Choo

The parent company of luxury brands such as Versace, Michael Kors and Jimmy Choo has reported total a revenue of US$1.2 billion for the fourth quarter of fiscal 2021, approximately flat compared to fiscal 2020.

On a constant currency basis, total revenue decreased 3.8%. On average, approximately 60% of the company's retail stores in EMEA and approximately 40% of the company’s retail stores in Canada were closed during fourth quarter fiscal 2021, due to Covid-19 restrictions.

Gross profit was US$737 million and gross margin was 61.6%, compared to US$631 million and 52.9% year-on-year. Adjusted gross profit was US$760 million and adjusted gross margin was 63.5%, compared to US$723 million and 60.7% in the fourth quarter of fiscal 2020.

Versace revenue was US$235 million, an increase of 10.3% year-on-year. On a constant currency basis, total revenue was approximately flat. Operating income was US$29 million.

Jimmy Choo revenue was US$124 million, an increase of 15.9% year-on-year. On a constant currency basis, total revenue increased 10.3%. Operating loss was US$18 million.

Michael Kors revenue of US$838 million decreased 3.9% year-on-year. On a constant currency basis, total revenue decreased 6.5%. Operating income was US$172 million.

Outlook 2022
Capri Holdings expects total revenue of approximately US$5.1 billion; gross margin expansion of approximately 50 basis points; operating margin of approximately 14%; net interest expense of approximately US$20 million and an effective tax rate of approximately 15%.