In the fourth quarter of its fiscal 2019, Capri Holdings’ revenue totalled US$1.344 billion, up 13.9% year-on-year. Gross profit was US$793 million and gross margin was 59%, compared with the same period in 2018. Net income in the quarter was US$19 million, or US$0.13 per diluted share compared with US$44 million, or US$0.29 per diluted share in the prior year. Acquired on December 31, 2018, Versace’s revenue in the quarter stood at US$137 million. Compared with Versace stand-alone results from the prior year, revenue is said to have increased in “high single digits”. The label’s operating loss was US$11 million in the quarter and operating margin was 8%. Jimmy Choo’s revenue totalled US$139 million in the quarter (+28.7%), while operating loss was US$8 million and operating margin was 5.8%. Michael Kors revenue totalled US$1.068 billion, down 0.4% year-on-year, while operating income amounted to US$166 million and operating margin was 15.5%.
“Fiscal 2019 was a transformational year for Capri Holdings. We expanded our fashion luxury group with the addition of Versace, one of the world’s most storied Italian luxury brands. Jimmy Choo delivered strong results and we continued to execute against Michael Kors’ three strategic growth pillars of product innovation, brand engagement and customer experience”, said John D. Idol, Chairman and CEO, Capri Holdings. “We were pleased that our luxury group delivered both double digit revenue and adjusted earnings per share growth”. For its full fiscal 2020, the Group expects total revenue to reach, approximately, US$6 billion, with an operating margin of about 15.5%.
Capri Holdings has also unveiled it aims to expand the number of Versace stores to 300 by 2022, from the current 188, as well as to renovate existing shops to reach its goal of doubling the label’s annual sales. Jonathan Akeroyd, CEO, Versace, said the luxury brand aims to reach a US$2 million revenue target. Previously focussed on selling clothes, the Versace stores are to be reorganised to feature more leather handbags, footwear and accessories. The Italian fashion label plans to grow its accessories range to 60% of its total business from the current 35%.
Source: Bloomberg
