US' Capri Holdings posts high-single-digit revenue growth in FY23

Further, the company experienced growth in the footwear segment across all brands. Retail sales of women's footwear at Versace and Michael Kors saw a low-double-digit increase, while Jimmy Choo witnessed high-single-digit growth, Capri Holdings said in a press release.

"Looking back on fiscal 2023, revenue increased high-single-digits and earnings per share increased mid-single-digits. These results were measured on a 52-week constant currency basis. We achieved several milestones in fiscal 2023, including record revenue at Versace and Jimmy Choo as well as mid-single-digit revenue growth at Michael Kors. Additionally, we generated strong free cash flow and returned $1.35 billion to shareholders. These results demonstrate the power of our business model, the strength of our luxury houses and the execution of our strategic initiatives," said John D Idol, Capri Holdings’ chairman and chief executive officer.

In the fourth quarter (Q4) of FY23, total revenue was $1.335 billion, a decrease of 10.5 per cent compared to the previous year. On a 13-week constant currency basis, the total revenue decrease was 3 per cent.

Despite the decline in revenue in Q4 FY23, gross profit stood at $867 million with a gross margin of 64.9 per cent, compared to $956 million and 64.1 per cent in the prior year. The company's operations suffered a loss of $40 million, and the operating margin stood at minus 3 per cent. In comparison, the income from operations in the previous year was $119 million, and the operating margin was 8 per cent.

The company's net loss was calculated at $34 million or $0.28 per diluted share in Q4 FY23, which marked a significant downturn compared to net income of $81 million, or $0.54 per diluted share, in the prior year.

On the brand front, Versace's Q4 FY23 revenue was $274 million, a decrease of 13.0 per cent compared to the prior year. Operating income was $14 million, and the operating margin was 5.1 per cent.

Jimmy Choo's Q4 FY23 revenue was $151 million, a decrease of 3.2 per cent compared to the prior year. However, on a 13-week constant currency basis, total revenue increased by 5.6 per cent. The operating margin was minus 4.6 per cent, compared to minus 9.6 per cent in the prior year, the release added.

For Michael Kors, the Q4 FY23 revenue decreased by 10.9 per cent compared to the prior year, standing at $910 million. Operating income was $147 million, with an operating margin of 16.2 per cent.

Fibre2Fashion News Desk (DP)