Capri Holdings Limited’s total revenue of 1.346 billion dollars
increased 11.9 percent in the first quarter compared to last year, while on
a constant currency basis, total revenue increased 13.8 percent. The
company said, net income was 45 million dollars or 30 cents per diluted
share compared to 186 million dollars or 1.22 dollars per diluted share in
the prior year. Adjusted net income was 145 million dollars or 95 cents per
diluted share, compared to 201 million dollars or 1.32 dollars per diluted
share in the prior year. The company has reaffirmed fiscal 2020 adjusted
earnings per share guidance of 4.95 dollars.
Commenting on the first quarter trading, John D. Idol, the company’s
Chairman and Chief Executive Officer, said in a statement: “Based on our
first quarter performance, we are reaffirming our earnings per share
guidance for fiscal 2020, which includes the impact of the strengthening US
dollar and additional tariffs on imports from China. With the power of
Versace and Jimmy Choo, and the strength of Michael Kors, we remain
confident that our three iconic, founder-led fashion brands position Capri
Holdings to grow revenue to 8 billion dollars over time and deliver
multiple years of earnings growth.”
Versace comparable store sales rise in Q1
The company added that Versace revenue was 207 million dollars and
comparable store sales increased double digits on a constant currency basis
compared to stand-alone results from the prior year. The brand’s operating
loss was 3 million dollars and operating margin was negative 1.4 percent,
while adjusted operating income was 3 million dollars and adjusted
operating margin was 1.4 percent.
Jimmy Choo’s first quarter revenue of 158 million dollars decreased 8.7
percent compared to the prior year, while on a constant currency basis,
total revenue decreased 5.8 percent and on a constant currency basis,
comparable store sales were flat. Jimmy Choo operating income was 11
million dollars and operating margin was 7 percent, compared to an
operating income of 22 million dollars and operating margin of 12.7 percent
in the prior year, while adjusted operating income was 25 million dollars
and adjusted operating margin was 14.5 percent in the prior year.
Michael Kors revenue of 981 million dollars decreased 4.8 percent
compared to the prior year, while on a constant currency basis, total
revenue decreased 3 percent and on a constant currency basis, comparable
store sales decreased low single digits. Michael Kors operating income was
201 million dollars and operating margin was 20.5 percent, compared to 230
million dollars and 22.3 percent in the prior year.
Capri Holdings’ gross profit for the quarter was 834 million dollars and
gross margin was 62 percent, compared to 751 million dollars and 62.4
percent in the prior year. Adjusted gross profit was 840 million dollars
and adjusted gross margin was 62.4 percent, compared to 754 million dollars
and 62.6 percent in the prior year.
Capri Holdings confirms earnings outlook for FY20
For Capri Holdings, the company expects total revenue of approximately
5.8 billion dollars, a reduction from prior guidance primarily reflecting
additional unfavourable foreign currency impact and lower Michael Kors
revenue, predominately related to North America wholesale for fiscal 2020.
Diluted earnings per share are expected of 4.95 dollars, including
approximately 20 cents per share of dilution from Versace, as well as the
impact of recently announced US tariffs on product produced in China.
For the second quarter, Capri Holdings expects total revenue of
approximately 1.45 billion dollars and diluted earnings per share of 1.21
dollars to 1.26 dollars, including approximately 5 cents per share of
dilution from Versace. For Versace, the company expects revenue of
approximately 220 million dollars and comparable store sales growth in the
mid single digits. For Jimmy Choo, the company expects revenue of
approximately 125 million dollars and comparable store sales approximately
flat to prior year, while for Michael Kors, the company expects revenue of
approximately 1.1 billion dollars and comparable store sales approximately
flat to last year.
Picture:Facebook/Versace
