Capri Holdings reported a 13.2 percent decrease in revenue to USD 1.07 billion for the first quarter, as the U.S. luxury firm becomes the latest victim of the ongoing global luxury slowdown.
SEE ALSO: Capri continues to feel sting from softening luxury demand, Versace Asia sees growth
The New York-based company said quarterly sales at its Versace brand fell 15.4 percent to USD 219 million, with sales swinging to a 3 percent decline in Asia, after a 6 percent uptick in the prior quarter.
Luxury footwear maker Jimmy Choo fared better globally, down 5.5 percent to USD 173 million, but was hindered by a whopping 17 percent drop in Asia, offsetting a 6 percent increase in the Americas.
Finally, Michael Kors continued to stem hemorrhaging sales during the quarter, down 14.2 percent to USD 675 million, with sales in Asia plummeting 23 percent for the three months ending June 209.
As a result of the sales declines, Capri Holdings swung to a net loss of USD 14 million, or a loss of USD 0.11 per diluted share, compared to net income of USD 48 million, or USD 0.41 per diluted share, in the prior year.
“Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods,” said John Idol, the company’s chairman and chief executive officer.
“We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment. Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury houses.”
Idol went on to reaffirm his company’s acquisition by rival Tapestry, the owner of brands Coach, Kate Spade, and Stuart Weitzman, after the Federal Trade Commission in April, filed a lawsuit to block the proposed transaction.
“As we previously stated, Capri intends to vigorously defend this case alongside Tapestry and we look forward to the successful completion of the pending acquisition,” continued Idol.
“This combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company.”
Capri isn’t alone in its struggle to fight waning demand for luxury goods in Asia, and beyond. Last month, luxury heavyweight Kering reported an 11 percent decline in sales for the first half, hindered by slowing interest for its darling Gucci brand, especially in Asia Pacific, while industry bellwether LVMH reported only a 1 percent increase in sales for the first half.