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Capri Holdings posts rise in Q2 sales and earnings

By Prachi Singh

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Management

Image: Versace SS23

Capri Holdings Limited reported second quarter revenue of 1.41 billion dollars increased 8.6 percent on a reported basis and 17.5 percent in constant currency.

Net income for the quarter was 224 million dollars or 1.63 dollars per diluted share, compared to 200 million dollars or 1.30 dollars per diluted share, in the prior year. Adjusted net income was 245 million dollars or 1.79 dollars per diluted share, compared to 235 million dollars or 1.53 dollars per diluted share, in the prior year.

Commenting on the results, John D. Idol, the company's chairman and CEO, said in a release: "Results were driven by momentum across all three of our luxury houses reflecting the power of Versace, Jimmy Choo and Michael Kors as well as the continued execution of our strategic initiatives."

Capri Holdings reports increase in revenue across brand portfolio

The company said, Versace revenue of 308 million dollars increased 9.2 percent compared to the prior year. On a constant currency basis, total revenue increased 27.7 percent.

Jimmy Choo revenue of 142 million dollars increased 3.6 percent compared to the prior year, while on a constant currency basis, total revenue increased 15.3 percent.

Revenues at Michael Kors of 962 million dollars increased 9.2 percent compared to the prior year and on a constant currency basis, total revenue increased 14.6 percent.

Capri Holdings reveals expectations for Q3 and full year

For Capri Holdings, the company expects total revenue of approximately 5.7 billion dollars, gross margin expansion of 50 basis points, operating margin of approximately 18.3 percent and diluted earnings per share of approximately 6.85 dollars.

For Versace, the company expects total revenue of approximately 1.15 billion dollars, operating margin of approximately 16 percent. For Jimmy Choo, the company expects total revenue of approximately 640 million dollars and operating margin of approximately 5 percent. For Michael Kors, the company expects revenue of approximately 3.91 billion dollars and operating margin of approximately 25 percent.

For the third quarter, for Capri Holdings, the company expects revenue of approximately 1.53 billion dollars, operating margin of approximately 20.5 percent and diluted earnings per share of approximately 2.20 dollars.

For Versace, the company expects total revenue of approximately 240 million dollars and operating margin in the high single digit range, for Jimmy Choo, total revenue is expected of approximately 180 million dollars and operating margin in the high single digit range and for Michael Kors, the company expects revenue of approximately 1.11 billion dollars and operating margin in mid-to-high 20 percent range.

"Looking at the remainder of fiscal 2023, we are now taking a more cautious view with our revenue outlook due to an increasingly uncertain macroeconomic environment, foreign currency headwinds and the ongoing impact of Covid related restrictions in China. At the same time, we are pleased to maintain Capri’s earnings per share guidance for the year, reflecting higher gross margin expectations,” added Idol.

Capri Holdings
Jimmy Choo
Michael Kors
Versace