Capri Holdings posts increase in Q4 revenue and earnings

Capri Holdings Limited reported total fourth quarter revenue of 1.492 billion dollars increased 24.6 percent compared to last year. On a constant currency basis, total revenue increased 28.4 percent. On a 13-week basis, total revenue increased 18.8 percent.

Net income for the quarter was 81 million dollars or 54 cents per diluted share, compared to a net loss of 183 million dollars or 1.21 dollars loss per diluted share, in the prior year. Adjusted net income was 152 million dollars or 1.02 dollars per diluted share, compared to 59 million dollars or 38 cents per diluted share, in the prior year.

Commenting on the fourth quarter trading, John D. Idol, the company’s chairman and chief executive officer, said: "Capri Holdings achieved the highest revenue, gross margin and earnings per share in the company’s history. Additionally, we generated strong free cash flow and returned 650 million dollars to shareholders in fiscal 2022.”

“The power of Versace, Jimmy Choo and Michael Kors as well as the proven resilience of the luxury market reinforce our optimism for the future and our ability to achieve 7 billion dollars in revenue and a 20 percent operating margin over time," added Idol.

Capri Holdings posts revenue increase at Versace, Michael Kors and Jimmy Choo

The company’s gross profit was 956 million dollars and gross margin was 64.1 percent compared to 737 million dollars and 61.6 percent in the prior year. Adjusted gross profit was 951 million dollars and adjusted gross margin was 63.7 percent compared to 760 million dollars and 63.5 percent in the prior year.

Versace revenue of 315 million dollars increased 34 percent compared to the prior year. On a constant currency basis, total revenue increased 44.3 percent, while operating income rose to 50 million dollars and operating margin was 15.9 percent.

Jimmy Choo revenue of 156 million dollars increased 25.8 percent and on a constant currency basis, total revenue increased 29.1 percent, while operating loss was 15 million dollars and operating margin was 9.6 percent compared to operating loss of 18 million dollars and operating margin of 14.5 percent in the prior year.

Michael Kors revenue of 1.021 billion dollars increased 21.8 percent compared to the prior year, while on a constant currency basis, total revenue increased 23.8 percent. Operating income rose to 210 million dollars and operating margin was 20.6 percent.

Capri Holdings expects FY23 revenues to rise by 5 percent

Capri Holdings expects total revenue of approximately 5.95 billion dollars, increasing approximately 5 percent for FY23 and approximately 10 percent in constant currency. Gross margin is expected to remain approximately flat to fiscal year 2022 and operating margin of approximately 18 percent, while diluted earnings per share are expected to reach 6.85 dollars.

For Versace, the company expects total revenue of approximately 1.225 billion dollars, increasing approximately 13 percent on a reported basis and approximately 23 percent in constant currency and operating margin of approximately 16 percent.

For Jimmy Choo, the company expects total revenue of approximately 650 million dollars, increasing approximately 6 percent on a reported basis and approximately 9 percent in constant currency and operating margin of approximately 5 percent.

For Michael Kors, the company expects total revenue of approximately 4.075 billion dollars, increasing approximately 3 percent on a reported basis and approximately 6 percent in constant currency and operating margin of approximately 24 percent.

In the first quarter, for Capri Holdings, the company expects total revenue of approximately 1.3 billion dollars, increasing approximately 4 percent versus prior year on a reported basis and approximately 9 percent in constant currency and operating margin of approximately 16.5 percent. Diluted earnings per share are expected to reach approximately 1.35 dollars.

For Versace, the company expects total revenue of approximately 265 million dollars, increasing approximately 11 percent on a reported basis and approximately 20 percent in constant currency and operating margin in the low double digit range.

For Jimmy Choo, the company expects total revenue of approximately 155 million dollars, increasing approximately 9 percent on a reported basis and approximately 13 percent in constant currency and operating margin in the mid single digit range.

For Michael Kors, the company expects total revenue of approximately 880 million dollars, increasing approximately 1 percent on a reported basis and approximately 5 percent in constant currency and operating margin in the low to mid 20 percent range.