Capri Holdings Limited, a global fashion luxury group, announced its financial results for the first quarter of fiscal 2022 ended 26th June, 2021.
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John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We were pleased by our first quarter performance which reflected the strength of Capri Holdings’ three global fashion luxury houses, Versace, Jimmy Choo and Michael Kors. All of our luxury houses significantly exceeded our revenue and earnings expectations for the quarter, as they continued to deepen consumer desire and engagement. As a result of this encouraging start to the year, we are raising our Fiscal 2022 revenue and earnings outlook.”
Mr. Idol concluded, “Looking forward, we are confident in the growth opportunities for Versace, Jimmy Choo and Michael Kors as the world continues to recover from the impact of the global pandemic. As we execute on our strategic initiatives, Capri Holdings is positioned to deliver multiple years of revenue and earnings growth.”
Capri Holdings reports its total revenue for the first quarter fiscal 2022 results of US$1.25 billion increased 178 percent compared to last year. On a constant currency basis, total revenue increased 164 percent.
Gross profit was US$856 million and gross margin was 68.3 percent, compared to US$302 million and 67.0 percent in the prior year. Adjusted gross profit was US$853 million and adjusted gross margin was 68.1 percent, compared to US$303 million and 67.2 percent in the prior year.
Income from operations was US$258 million and operating margin was 20.6 percent, compared to a loss from operations of US$162 million and operating margin of (35.9)percent in the prior year. Adjusted income from operations was US$261 million and operating margin was 20.8 percent, compared to a loss from operations of US$147 million and operating margin of (32.6) percent in the prior year.
Net income was US$219 million, or US$1.41 per diluted share, compared to a net loss of US$180 million, or US$(1.21) per share, in the prior year. Adjusted net income was US$221 million, or US$1.42 per diluted share, compared to a net loss of US$156 million or, US$(1.04) per share, in the prior year.
Net inventory at 26th June, 2021 was US$760 million, a 20 percent decrease compared to the prior year.
Versace revenue of US$240 million increased 158 percent compared to the prior year. On a constant currency basis, total revenue increased 136 percent.
Versace operating income was US$48 million and operating margin was 20.0 percent compared to a loss of US$41 million and operating margin of (44.1) percent in the prior year.
Jimmy Choo revenue of US$142 million increased 178 percent compared to the prior year. On a constant currency basis, total revenue increased 147 percent.
Jimmy Choo operating income was US$11 million and operating margin was 7.7 percent, compared to an operating loss of US$29 million and operating margin of (56.9) percent in the prior year.
Michael Kors revenue of US$871 million increased 184 percent compared to the prior year. On a constant currency basis, total revenue increased 175 percent.
Michael Kors operating income was US$240 million and operating margin was 27.6 percent, compared to an operating loss of US$48 million and operating margin of (15.6) percent in the prior year.
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During the first quarter, the Company repurchased approximately 0.9 million ordinary shares for approximately US$50 million in open market transactions. As of 26th June, 2021, the remaining availability under the Company’s share repurchase authorization was US$350 million.