In Trends

Capri Holdings announces financial results

Capri Holdings

Capri Holdings Limited, a global fashion luxury group, announced its financial results for the second quarter of fiscal 2021 ended 26th September, 2020.

SEE ALSO : Hugo Boss announces financial results

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “We were pleased with our second quarter results, with revenue and earnings surpassing our expectations. Our performance demonstrates the power and desirability of the Versace, Jimmy Choo and Michael Kors brands. Through creativity and innovation, our luxury houses inspire excitement and passion, creating an emotional connection with our consumers. We are also attracting new consumers to each of our luxury houses as evidenced by the double digit increase in our consumer databases.”

Mr. Idol concluded, “As the world continues to emerge from this crisis, we are increasingly optimistic about the outlook for the fashion luxury industry and Capri Holdings. We have an incredible portfolio of luxury houses, each with their rich heritage, exclusive DNA and strong brand loyalty. We are uniquely positioned to drive multiple years of strong growth as we continue to execute on our strategic initiatives.”

Capri Holdings’s total revenue in the second quarter was $1.1 billion, decreased 23.0% compared to last year. On a constant currency basis, total revenue decreased 24.6%.

Gross profit was $710 million and gross margin was 64.0%, compared to $874 million and 60.6% in the prior year. Adjusted gross profit was $701 million and adjusted gross margin was 63.2%, compared to $879 million and 61.0% in the prior year.

Income from operations was $153 million and operating margin was 13.8% compared to $75 million and 5.2% in the prior year. Adjusted income from operations was $182 million and operating margin was 16.4%, compared to $202 million and 14.0% in the prior year.

Net income was $122 million, or $0.81 per diluted share compared to $73 million, or $0.47 per diluted share in the prior year. Adjusted net income was $137 million, or $0.90 per diluted share, compared to $177 million or $1.16 per diluted share in the prior year. Net inventory at 26th September, 2020 was $930 million, a 13% decrease compared to the prior year.

Versace’s revenue was $195 million, decreased 14.5% compared to the prior year. On a constant currency basis, total revenue decreased 18.9%. Versace operating income was $20 million and operating margin was 10.3% compared to $9 million and 3.9% in the prior year. Last year, adjusted operating income was $14 million and adjusted operating margin was 6.1%.

Jimmy Choo’s revenue was $122 million, decreased 2.4% compared to the prior. On a constant currency basis, total revenue decreased 6.4%. Jimmy Choo operating income was break even, compared to an operating loss of $10 million and operating margin of (8.0)% in the prior year.

SEE ALSO : Farfetch, Alibaba Group and Richemont partner to develop “Luxury New Retail”

Michael Kors’s revenue was $793 million, decreased 27.2% compared to the prior year. On a constant currency basis, total revenue decreased 27.9%. Michael Kors operating income was $190 million and operating margin was 24.0%, compared to $222 million and 20.4% in the prior year.

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox:

 

Stay ahead
Subscribe for free!
Register now
Stay ahead