US’ Capri Holdings’ revenue at $1.43 bn in Q3 FY24

The group’s gross profit also saw a dip, settling at $928 million, with the gross margin receding to 65.0 per cent from the previous year’s 66.5 per cent. Adjustments to the gross profit maintained it at $928 million, while the adjusted gross margin mirrored the reported figure at 65 per cent, a slight fall from the prior year’s 66.3 per cent.

American fashion house Capri Holdings saw a 5.6 per cent decrease in revenue to $1.43 billion in Q3 FY24, with a decline across Versace, Jimmy Choo, and Michael Kors due to softer demand in the Americas and EMEA.
The company’s gross profit fell to $928 million, net income to $105 million, and inventory decreased by 14 per cent to $1.02 billion.

Operational income experienced a significant decrease, with reported figures dropping to $122 million and an operating margin of 8.5 per cent, a stark contrast to the $236 million and 15.6 per cent margin of the prior year. Adjusted operational income was reported at $172 million with a 12.1 per cent margin, down from the previous year’s $256 million and 16.9 per cent margin, the company said in a press release.

Net income also fell to $105 million, or $0.88 per diluted share, from the previous year’s $225 million, or $1.72 per diluted share. Adjusted net income was reported at $142 million, or $1.20 per diluted share, a decrease from $240 million, or $1.84 per diluted share, in the corresponding period of the previous year.

Inventory levels as of December 30, 2023, were reported at $1.02 billion, marking a 14 per cent reduction from the prior year.

Versace’s revenue saw an 8.8 per cent decrease to $227 million, with retail sales dipping in the low-single-digits and wholesale revenue experiencing a double-digit decline. The brand reported an operating loss of $14 million, a significant downturn from the previous year’s operating income of $24 million.

Revenue for Jimmy Choo slightly decreased by 1.2 per cent to $166 million. Retail sales remained stable, while wholesale revenue saw a mid-single-digit decrease. Operating income was reported at $4 million, down from $18 million in the previous year.

Michael Kors reported a revenue of $1.03 billion, a 5.6 per cent decrease, with both retail and wholesale sectors facing declines. Operating income for the brand was $219 million, a decrease from the previous year’s $251 million.

“Overall, our performance in the third quarter continued to be impacted by softening demand for fashion luxury goods. However, sales trends improved sequentially in the third quarter, driven by better results in our own retail channel while sales in our wholesale channel remained challenged. Additionally, we were pleased to have resolved the Michael Kors Americas e-commerce implementation issues discussed last quarter and our platform is now running smoothly,” said John D Idol, Capri Holdings’ chairman and chief executive officer.

Fibre2Fashion News Desk (DP)