“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 Ecommerce implementation issues discussed last quarter and our platform is now running smoothly”, commented John D. Idol, the Company's Chairman and Chief Executive Officer.

Third Quarter Results

In the three months to the 30^th of December, Capri’s total revenue amounted to 1.43 billion US dollars, reflecting a decrease of 5.6%, or 6.6% on a constant currency basis, as compared to the same period of last fiscal year. The company’s performance, particularly in the Americas, continued to be impacted by weaker demand from luxury consumers.

In the third quarter of fiscal 2024, the group’s gross profit totalled 928 million US dollars and the gross margin was 65.0%, on a comparable basis to a gross profit of 1.01 billion US dollars and a gross margin of 66.5% recorded in the same period of the prior year. “Gross profit margin decreased relative to the prior year, primarily driven by lower full price sell throughs”, added Capri.

The company’s net income declined to 105 million US dollars, or 0.88 US dollars per diluted share, in the third quarter of the current fiscal year, from 225 million US dollars, or 1.72 US dollars per diluted share, in a similar period of the previous fiscal year. Accordingly, its third quarter adjusted net income was 142 million US dollars, or 1.20 US dollars per diluted share, as compared to 240 million US dollars, or 1.84 US dollars per diluted share, in the third quarter of fiscal 2023.

Capri Holdings did not provide financial guidance due to the pending merger transaction with Tapestry.

Brand Summary

In the third quarter of fiscal 2024, Versace’s revenue totalled 227 million US dollars, down by 8.8%, or 10.8% on a constant currency basis, on a comparable basis to the same period of fiscal 2023. This was due to “softening consumer demand in the Americas and EMEA, partially offset by increased revenue in Asia”.

Jimmy Choo’s third quarter revenue reached 166 million US dollars, reflecting a decrease of 1.2%, or 3.0%, on a constant currency basis, as compared to a similar period of the prior fiscal year. Similar to Versace, weak consumer demand, particularly in the Americas, impacted its performance, although this was partially offset by increased revenue in Asia.

Finally, in the third quarter of the current fiscal year, Michael Kors’ revenue amounted to 1.03 billion US dollars, down by 5.6%, or 6.2% on a constant currency basis, on a comparable basis to the same period of fiscal 2023. “The decline versus prior year was primarily attributable to softening consumer demand, mainly in the Americas”, said Capri, but also to the “Michael Kors Americas Ecommerce implementation” issues.