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Capri Holdings beats Q2 expectations, raises full-year outlook

By Huw Hughes

Nov 3, 2021

Management

Image: Michael Kors

Capri Holdings, the parent company of luxury labels Michael Kors, Versace and Jimmy Choo, has upped its full-year revenue and profit guidance after beating expectations in the second quarter of the year.

In the three months to September 25 2021, revenue at the group increased 17 percent to 1.3 billion dollars, with “better than expected” results across its three fashion houses.

Breaking it down by brand, Michael Kors - the group’s biggest label - reported revenue of 881 million dollars, up 11 percent on last year, while revenue at Versace jumped 45 percent to 282 million dollars, and revenue at Jimmy Choo was up 12 percent to 137 million dollars.

The company made a net income of 200 million dollars, compared to 122 million dollars a year earlier.

Capri ups FY guidance

“We are pleased with our second-quarter results with revenue, gross margin, operating margin and earnings per share all exceeding our expectations,” said Capri CEO and chair John D. Idol.

“This performance reflects the power of Versace, Jimmy Choo and Michael Kors as well as the execution of our strategic initiatives,” he said.

Capri raised its full-year guidance on the stronger-than-expected results. It now expects revenue of approximately 5.4 billion dollars compared to its previous estimate of 5.3 billion dollars.

And it now expects diluted earnings per share of around 5.30 dollars compared to the 4.50 dollars previously anticipated.

“We remain confident in the strength of our luxury houses and are pleased to be raising revenue and earnings guidance for the year,” Idol said.

“Our new outlook reflects both stronger revenue performance as well as greater than anticipated gross margin expansion driven by the execution of our strategic initiatives.”