While coronavirus may have impacted sales for Capri Holding Ltd., the parent company of Versace, Jimmy Choo, and Michael Kors, it still reported better than expected financial results this week for the first quarter ended June 27th.
The company saw its sales drop across all brands with Versace down 55% to $93 million, Jimmy Choo down 68% to $51 million, and Michael Kors down 69% to $307 million.
The net losses amounted to $180 million, or $1.21 per share. This is versus the prior year’s $45 million, or 30 cents per diluted share. On an adjusted basis, net losses were $1.04 per share which were narrower than the $1.11 per share that analysts had been expecting.
Revenues declined 67% to $451 million, but was stronger than the company’s own expectations and better than Wall Street’s expected $427.3 million.
“Looking at our progress in the fiscal first quarter, we were encouraged by trends across all three of our luxury houses, with sales and margin performance ahead of our initial expectations,” stated Capri chairman and CEO John Idol. “We were particularly pleased with the strong growth of our eCommerce business, as well the sequential improvement in overall revenue trends through the first quarter and into July.”
“During these unprecedented times, we plan to continue to execute on our strategic growth initiatives and remain confident in the long-term opportunities for each of our unique global luxury houses,” Idol said. “Capri Holdings has a portfolio of three iconic, founder-led fashion luxury brands that have enduring value and a long history of successfully navigating challenging periods. We will continue to carefully guide our business through the current retail environment, while positioning the company to resume its growth trajectory in fiscal 2022.”
The company declined to provide an outlook for fiscal year 2021 and said that there was a “lack of visibility surrounding the pandemic, macroeconomic fundamentals and tourism.”
Shares of Capri were up over 8% in premarket trading on Wednesday morning as Wall Street digested the results.
Disclaimer: We have no position in Capri Holdings Ltd. (NYSE: CPRI) and have not been compensated for this article.