×

Jimmy Choo Parent Sees Rebound in Luxury Spending as Shoppers Return to Stores

Capri Holdings Ltd. capped off a pandemic-plagued year with a solid earnings beat and offered a positive outlook for the fiscal year as it banked on a broader rebound in luxury shopping.

For the three months ended March 27, the fashion group logged adjusted profits of $59 million, or adjusted earnings of 38 cents per share, versus the prior year’s adjusted profits of $16 million, or adjusted earnings of 11 cents per share. Analysts had forecasted earnings of just 2 cents per share. Revenues were flat at $1.2 billion but exceeded market watchers’ estimates of $1.02 billion.

“We were pleased with our fourth-quarter results as revenue improved sequentially and exceeded our expectations,” chairman and CEO John Idol said in a statement. “These results are a testament to the strength of our brands as well as the dedication, resilience and agility of the entire Capri Holdings team.”

During the quarter, an average of 60% of Capri’s stores in the Europe-Middle East-Africa region and 40% of its Canada-based locations were shuttered due to the COVID-19 pandemic. Still, according to the company, retail sales increased 13% globally, while e-commerce sales rose roughly 80%.

By brand, revenues at Versace improved 10.3% to $235 million, while Jimmy Choo advanced 15.9% to $124 million. Michael Kors, on the other hand, saw revenues fall 3.9% to $838 million.

“During the year, we reevaluated and refined Capri Holdings’ strategic direction to ensure the company emerges from the pandemic stronger and more profitable,” explained Idol. “For Versace and Jimmy Choo, we reaffirmed our long-term plans and are even more enthusiastic about the prospects of these luxury houses. For Michael Kors, we recalibrated our plans to further elevate the brand positioning and deliver higher profit margins.”

Like many fashion purveyors, Capri had seen a lag in sales as indoor-bound shoppers opted for sweats and slippers over dresses and heels. However, a robust COVID-19 vaccination program and pent-up demand for luxury has recently delivered a boost to store traffic and sales trends.

For the 2022 fiscal year, the company anticipates revenues of approximately $5.1 billion, as well as diluted earnings per share in the range of $3.70 to $3.80.

It also provided guidance for each of the upcoming quarters: For Q1, it predicted revenues of $1.1 billion and diluted earnings per share of 75 cents, while Q2 and Q3 are expected to see respective gains of $1.2 billion (earnings of 70 cents to 75 cents per share) and $1.4 billion (earnings of $1.65 to $1.70 per share). It projected that it would close out the year with Q4 revenues of $1.4 billion and diluted earnings per share between 55 cents and 60 cents.

“Looking forward, we remain optimistic about the outlook for the fashion luxury industry and Capri Holdings,” Idol concluded. “As the world starts to recover from the pandemic, we are confident in our growth opportunities for Versace, Jimmy Choo and Michael Kors. We believe our three luxury houses position Capri Holdings to deliver multiple years of revenue and earnings growth, as well as increase shareholder value.”

joor Sponsored By JOOR

JOOR Preps Digital Passport for the Hybrid Trade Show Era

JOOR Passport incorporates elements from the virtual trade show experience into returning in-person events.
Learn More

Access exclusive content