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Capri results disappoint in the fourth quarter

Jun 3, 2024 United States
Capri results disappoint in the fourth quarter
As its ongoing acquisition by Tapestry awaits legal resolution after being blocked by a US regulator, the luxury fashion group reports a disappointing fourth quarter due to weak global demand
“Overall, we were disappointed with our results as performance in the fourth quarter continued to be impacted by softening demand globally for fashion luxury goods. In our retail channel, sales trends improved sequentially in the Americas and EMEA while trends slowed in Asia. In our wholesale channel, sales remained challenged”, commented John D. Idol, the Company’s Chairman and Chief Executive Officer.  He also reiterated Capri’s disagreement with the FTC’s decision to block Tapestry’s acquisition, stressing that the group “intends to vigorously defend this case in court alongside Tapestry and we look forward to the successful completion of the pending acquisition”.


Fourth Quarter Results

In the quarter that ended on the 30th of March, Capri’s total revenue totalled 1.22 billion US dollars, reflecting a decrease of 8.4% (or 7.9% on a constant currency basis) on a comparable basis to the same period of last fiscal year. Both retail and wholesale sales fell due to weakening demand for luxury goods globally, especially in the Americas and EMEA.

In the last quarter of the year 2024, Michael Kors’ revenue decreased by 9.7% (also on a constant currency basis) to 822 million US dollars, Versace’s revenue decreased by 3.6% (or by 2.9% on a constant currency basis) to 264 million US dollars, and Jimmy Choo’s revenue decreased by 9.3% (also on a constant currency basis) to 137 million US dollars, as compared to the same quarter of the previous year.

Capri Holdings’ fourth quarter net loss was 472 million US dollars, or a loss per diluted share of 4.03 US dollars, on a comparable basis to a net loss of 34 million US dollars, or a loss per diluted share of 0.28 US dollars, recorded in a similar period of fiscal 2023.


Full Year Results

The luxury group posted a revenue of 5.17 billion US dollars in the twelve months ended on the 30th of March, a decline of 7.9% on a comparable basis to the previous fiscal year.

Capri also recorded a full year net loss of 229 million US dollars, or a loss per diluted share of 1.96 US dollars per diluted share, as compared to a net income of 616 million US dollars, or earnings per diluted share of 4.60 US dollars, in the prior year.


Image Credits: fashiongonerogue.com



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