Michael Kors Parent Capri Holdings Reports an Earnings Beat

Shares of Capri Holdings, the parent company of Michael Kors, Versace, and Jimmy Choo, had reported its third quarter financial results this week.

For the three-month period ending Dec. 26, total company revenues decreased 17 percent to $1.3 billion, down from $1.5 billion the same time last year.

Net profits were $178 million, compared with $209 million during last year’s third quarter.

By brand, total revenues at Michael Kors were $986 million, down from $1.2 billion the same time last year. Sales at Versace were $195 million, the same as last year, while Jimmy Choo’s revenues were $121 million, down from $165 million the previous year.

“We are a year into the global pandemic that has profoundly impacted the entire world,” said John D. Idol, Capri’s chairman and chief executive offer. “Looking back over the last three quarters since the onset of COVID-19, we are encouraged by the performance of all our luxury houses, which illustrates the strength of our brands as well as the resilience and agility of our businesses.”

“We were pleased with our third quarter results as revenue improved sequentially and exceeded our expectations,” Idol continued. “As we continued to execute on our strategic initiatives, earnings were meaningfully higher than anticipated driven by significant gross margin expansion. We also remain encouraged by the double-digit increases in our customer databases as we continue to attract new consumers to each of our luxury houses.”

Idol said on the earnings call, “It’s been inspiring to see the entire organization rally together. I’m incredibly proud of the entire team and what Capri Holdings has been able to accomplish during these unprecedented times.”

He added, “Retail sales improved sequentially every quarter, while e-commerce sustained strong growth across all brands. Gross margin expanded nearly 400 basis points year-to-date through the third quarter.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.