Versace parent Capri Holdings records drop in revenue and profit

Capri Holdings Limited reported a revenue decrease of 16.4 percent on a reported basis and 16.4 percent in constant currency to 1.08 billion dollars.

The company’s retail sales declined high-single-digits with trends being impacted by softening demand globally for fashion luxury goods. In wholesale, revenue decreased double-digits driven by softer demand globally.

Commenting on the financial results, John D. Idol, the company's chairman and CEO, said: “Overall, we were disappointed with our second quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. Despite the challenging global retail environment, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across all three of our luxury houses.”

Gross profit for the quarter was 694 million dollars and gross margin was 64.3 percent, while gross profit margin declined 10 basis points. Loss from operations was 38 million dollars and operating margin was negative 3.5 percent, while adjusted income from operations was 32 million dollars and adjusted operating margin was 3 percent.

Net income declined to 24 million dollars or 20 cents per diluted share, while adjusted net income decreased to 77 million dollars or 65 cents per diluted share.

Versace’s revenue for the quarter of 201 million dollars decreased 28.2 percent on both a reported basis and constant currency basis compared to prior year. Retail sales decreased high-teens while wholesale revenue decreased double-digits. Revenue in the Americas declined 33 percent, while revenue in EMEA decreased 28 percent and revenue in Asia declined 20 percent.

Jimmy Choo revenue of 140 million dollars increased 6.1 percent on a reported basis and 5.3 percent on a constant currency basis compared to prior year. Retail sales decreased low-single-digits while wholesale revenue increased double-digits. Revenue in the Americas declined 8 percent, while revenue in EMEA increased 25 percent and revenue in Asia decreased 8 percent.

Michael Kors reported revenue of 738 million dollars, down 16 percent on a reported basis and 15.9 percent on a constant currency basis. Retail sales decreased mid-single-digits while wholesale revenue declined double-digits. Revenue in the Americas decreased 12 percent, while revenue in EMEA declined 15 percent and revenue in Asia decreased 43 percent.