American firm Capri Holdings' revenue at $1.22 bn in Q4 FY24

The company's retail sales declined in the mid-single digits, with the trend primarily influenced by a softening demand for fashion luxury goods worldwide. In the wholesale sector, revenue decreased in the high teens, driven by weaker demand in the Americas and Europe, Middle East, and Africa (EMEA) regions.

The gross profit for the quarter was $767 million, with a gross margin of 62.7 per cent, compared to $867 million and a gross margin of 64.9 per cent in the prior year. On an adjusted basis, the gross profit remained $767 million, and the adjusted gross margin was 62.7 per cent, compared to $863 million and 64.6 per cent in the previous year, the company said in a press release.

Capri Holdings reported a loss from operations of $543 million, with an operating margin of minus 44.4 per cent, primarily due to non-cash impairments. This compares to a loss from operations of $40 million and an operating margin of minus 3 per cent in the prior year. Adjusted income from operations was $78 million, with an operating margin of 6.4 per cent, compared to $121 million and 9.1 per cent in the prior year.

The net loss for the quarter was $472 million, or $4.03 per diluted share, compared to a net loss of $34 million, or $0.28 per diluted share, in the previous year, significantly impacted by non-cash impairments. Adjusted net income was $50 million, or $0.42 per diluted share, compared to $121 million, or $0.97 per diluted share, in the prior year. Net inventory as of March 30, 2024, was $862 million, an 18.4 per cent decrease compared to the prior year.

Versace's revenue for Q4 FY24 was $264 million, a decrease of 3.6 per cent on a reported basis and 2.9 per cent on a constant currency basis, primarily due to the global softening demand for luxury fashion goods. Retail sales increased in the mid-single digits, while wholesale revenue decreased in double digits. Revenue in the Americas declined by 1 per cent, in EMEA by 11 per cent, while revenue in Asia increased by 6 per cent. Versace's global consumer database grew by 1.9 million new consumers, representing a 30 per cent growth over the last year. Versace's operating income was $1 million, with an operating margin of 0.4 per cent, compared to $14 million and 5.1 per cent in the prior year.

Jimmy Choo reported a revenue of $137 million, a 9.3 per cent decrease on both a reported and constant currency basis. Retail sales decreased in the low-single digits, while wholesale revenue decreased in double digits. Revenue in the Americas declined by 9 per cent, in EMEA by 6 per cent, and in Asia by 14 per cent. The global consumer database for Jimmy Choo increased by 0.7 million new consumers, reflecting 12 per cent growth over the last year. The operating loss for Jimmy Choo was $8 million, with an operating margin of 5.8 per cent, compared to a loss of $7 million and an operating margin of 4.6 per cent in the prior year, primarily due to lower full-price sell-throughs and expense deleverage on lower revenue.

Michael Kors reported a revenue of $822 million, a decrease of 9.7 per cent on a reported basis and 9.2 per cent on a constant currency basis. Retail sales declined in the high-single digits, while wholesale revenue decreased in double digits. Revenue in the Americas declined by 9 per cent, in EMEA by 7 per cent, and in Asia by 16 per cent. Michael Kors' global consumer database increased by 9.0 million new consumers, representing a 13 per cent growth over the last year. Michael Kors' operating income was $116 million, with an operating margin of 14.1 per cent, compared to $147 million and 16.2 per cent in the prior year.

"Overall, we were disappointed with our results as performance in the fourth quarter continued to be impacted by softening demand globally for fashion luxury goods. In our retail channel, sales trends improved sequentially in the Americas and EMEA while trends slowed in Asia. In our wholesale channel, sales remained challenged," said John D Idol, Capri Holdings’ chairman and chief executive officer.

Fibre2Fashion News Desk (DP)