Capri Holdings, parent company of Versace, Jimmy Choo, and Michael Kors, announced on February 8 decreases across its Asia business in the third quarter, coinciding with a disappointing international wholesale result during the three months.
SEE ALSO: Capri sees Versace Asia sales lift in Q2, Jimmy Choo, Michael Kors down
The New York-headquartered company said total revenues for the quarter fell to USD 1.51 billion, down 6 percent compared to last year.
In Asia, Versace revenues fell to USD 51 million, from USD 63 million; Jimmy Choo sales slid to USD 44 million, from USD 58 million; and Michael Kors sales dipped to USD 106 million, from USD 129 million, in the prior-year quarter.
The company’s total net income fell to USD 225 million for the quarter ending December 31, from USD 323 million, in the prior-year quarter.
“Overall, our performance in the third quarter was more challenging than anticipated. However, many aspects of our business performed well, in particular we were pleased with the continued growth in our own retail channel across all three of our luxury houses. This is a testament to the strength of our powerful iconic brands, as well as the success of our strategic initiatives,” said John Idol, the company’s chairman and chief executive officer.
“However, we were disappointed with the performance of our global wholesale business in the quarter which resulted in expense deleverage and a lower operating margin. We have begun taking measures to better align operating expenses with the change in revenue by channel. At the same time we will continue to make strategic investments to drive long term growth.”
Looking ahead, Capri said it expects total revenue of approximately USD 5.56 billion for full-year 2023.
“As we look to fiscal 2024 we expect Capri Holdings to generate mid-single-digit revenue and earnings growth,” added Idol.
“We remain confident in our ability to achieve our long-term goals over time due to the resilience of the luxury industry, the strength of our portfolio of luxury houses and the talented group of employees executing our strategic initiatives.”