In the fourth quarter, Capri Holdings, the parent company of Michael Kors, reported a double-digit decline in revenue as it swung to a loss.
In the three months leading up to 1st April, the US fashion group reported revenue of US $ 1.34 billion compared to US $ 1.49 billion in the same period last year. On a 13-week constant currency basis, the drop came to a less substantial 3 per cent, though.
Refinitiv data shows that despite the decline, revenue nevertheless exceeded analysts’ predictions.
By brand, the revenue for Versace declined 13 per cent to US $ 274 million, the revenue for Jimmy Choo dropped 3.2 per cent to US $ 151 million, and the revenue for Michael Kors lost 10.9 per cent on a reported basis to US $ 910 million.
Capri switched from a profit of US $ 81 million a year earlier to a net loss of US $ 34 million in the quarter.
Based on its fourth-quarter results, the group decreased its forecast for full-year sales. It has decreased its previous prediction of US $ 5.8 billion in revenue to an estimated US $ 5.7 billion.
However, it continues to forecast diluted earnings per share of around US $ 6.40 for FY ’24.
Commenting on the results in a statement, group CEO and chair John D. Idol said, “While we recognise that there are near-term uncertainties in the Americas, we are encouraged by the strong trends in Asia and continued growth in EMEA.”
