Capri Holdings posts strong Q3 revenue and profit, ups 2022 guidance

Luxury fashion group Capri Holdings has upped its full-year profit and revenue guidance following “better than expected” sales at all three of its luxury houses in the third quarter.

In the three months to December 25, the group reported revenue of 1.6 billion dollars, up 24 percent compared to a year earlier and also slightly up on pre-pandemic 2019 levels.

Breaking it down by brand, Michael Kors - the group’s biggest label - reported revenue of 1.18 billion dollars, up 20 percent on last year.

Meanwhile, revenue at Versace increased 29 percent to 251 million dollars, and revenue at Jimmy Choo grew 47 percent to 178 million dollars.

Capri widens Q3 profit

The group made a net income of 322 million dollars in the third quarter compared to 179 million dollars a year earlier.

“We are pleased to report third-quarter performance exceeded our expectations for revenue, operating margin and earnings per share,” said chair and CEO John D. Idol in a statement.

“We are especially proud of our performance given the ongoing headwinds caused by the pandemic, including regional restrictions and supply chain challenges,” he said.

Following the strong results, Capri said it has raised its fiscal 2022 revenue and earnings guidance.

The group now expects full-year revenue of around 5.56 billion dollars compared to an earlier estimate of 5.4 billion dollars.

And it expects adjusted earnings per share of around 6 dollars, up from 5.30 dollars.

Looking even further ahead, the group now expects revenue for fiscal 2023 of approximately 6.1 billion dollars.