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Capri announces flat revenue

May 28, 2021 United Kingdom
Capri announces flat revenue
The fashion group reported a drop in sales of its Michael Kors brand - in the order of 4% in the fourth quarter. This contrasts with the success of the brands Versace and Jimmy Choo, whose sales increased by 10% and 16%
"Looking back on fiscal 2021, the COVID-19 pandemic has had a profound effect on the entire world. The unprecedented challenges tested our business and industry in ways we could never have imagined. Despite these challenges, we were encouraged by the performance of all three of our luxury houses, with revenue and earnings significantly exceeding our expectations. These results are a testament to the strength of our brands as well as the dedication, resilience and agility of the entire Capri Holdings team. We were pleased with our fourth quarter results as revenue improved sequentially and exceeded our expectations. Retail sales increased by 13% versus prior year, driven by an improvement in both ecommerce and store sales. As we continued to execute on our strategic initiatives, earnings were higher than anticipated driven by better revenue results and gross margin expansion across all three of our luxury houses", commented John D. Idol, the Company’s Chairman and Chief Executive Officer.


Capri

Total revenue of 1.2 billion US dollars was approximately flat compared to last year. On a constant currency basis, total revenue decreased by 3.8%. During the quarter, the company experienced temporary door closures in geographies impacted by lockdowns associated with COVID-19 cases. 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. Net loss totalled 183 million US dollars, or -1.21 US dollars per diluted share compared to a net loss of 551 million US dollars, or - 3.69 US dollars per diluted share in the prior year. Adjusted net income was 59 million US dollars, or 0.38 US dollars per diluted share. Last year, adjusted net income was 16 million US dollars or 0.11 US dollars per diluted share.


Versace

Revenue of this segment totaled 235 million US dollars, increasing by 10.3% compared to the prior year. On a constant currency basis, total revenue was approximately flat. Versace operating income was 29 million US dollars and operating margin was 12.3% compared to an operating loss of 2 million US dollars and operating margin of (0.9)% in the prior year.

Jimmy Choo

The brand's revenue in the period reached 124 million US dollars, growing by 15.9% compared to the prior year. On a constant currency basis, total revenue increased 10.3%. Jimmy Choo operating loss was 18 million US dollars and operating margin was -14.5%, compared to operating loss of 23 million US dollars and operating margin of -21.5% in the prior year.

Michael Kors

Michael Kors revenue of 838 million US dollars decreased 3.9% compared to the prior year. On a constant currency basis, total revenue decreased 6.5%. Michael Kors operating income was 172 million US dollars and operating margin was 20.5%, compared to operating income of 139 million US dollars and operating margin of 15.9% in the prior year.

Fiscal Year 2022 Outlook

Capri is expecting total revenue of approximately 5.1 billion US dollars for fiscal year 2022. For the first quarter of fiscal 2022, the company expects total revenue of approximately 1.1 billion US dollars.

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