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Capri announces quarter results

Feb 8, 2019 United Kingdom
Capri announces quarter results
A global fashion luxury group, Capri Holdings announced its financial results for the third quarter of fiscal 2019 (ended 29th of December 2018). Good performance marks a quarter in which the Versace acquisition was also completed
John D. Idol, the Company’s Chairman and Chief Executive Officer, commented: “We are extremely pleased to have recently renamed our company Capri Holdings Limited and completed the acquisition of Versace. In the quarter, Jimmy Choo delivered strong performance, as we continued to execute on our accelerated growth plans. In Michael Kors, we remain focused on executing our Runway 2020 strategic initiatives and expect our efforts will return the brand to growth next year. For full year fiscal 2019, our luxury group is expected to deliver both double digit revenue and adjusted earnings per share growth. Taken together, we believe our three iconic, founder-led fashion brands position Capri Holdings to accelerate revenue to 8 billion dollars US dollars and deliver multiple years of earnings growth."


Third Quarter Results

Total revenue of 1.44 billion US dollars was approximately flat compared to last year, including an incremental month of Jimmy Choo revenue of 39.3 million US dollars. On a constant currency basis, total revenue increased by 1.1%. Net income totalled 199.6 million US dollars, or 1.33 US dollars per diluted share compared to 219.4 million US dollars, or 1.42 US dollars per diluted share in the prior year. Adjusted net income was 264.7 million US dollars, or 1.76 US dollars per diluted share, compared to 273.4 million US dollars or 1.77 US dollars per diluted share in the prior year.

Michael Kors Segment

Michael Kors Retail revenue of 838.0 million US dollars decreased by 1.0% compared to the prior year. Comparable store sales decreased by 2.4%, which was in line with expectations. On a constant currency basis, comparable store sales decreased 1.0%.
Michael Kors Wholesale revenue declined by 8.3% to 394.9 million US dollars compared to the prior year. Michael Kors Wholesale operating income totalled 108.6 million US dollars and operating margin was 27.5%, compared to 100.5 million US dollars and 23.3% in the prior year. Michael Kors Licensing revenue decreased by 9.9% to 43.5 million US dollars compared to the prior year.
  

Jimmy Choo Segment

Jimmy Choo revenue totalled 161.6 million US dollars. The company acquired Jimmy Choo back in November 2017 and compared to Jimmy Choo stand-alone results from the prior year, revenue increased mid-single digits.


Outlook

For the full year, Capri Holdings expects total revenue to be approximately 5.22 billion US dollars. Michael Kors revenue is expected to be approximately 4.51 billion US dollars, including a low single digit comparable store sales decline. Jimmy Choo revenue is now expected to be approximately 580 million US dollars, a slight reduction from prior guidance reflecting an unfavorable foreign currency impact. Versace revenue is expected to be approximately 130 million US dollars.

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