Capri Holdings’ third quarter revenue of 1.43 billion dollars decreased 5.6 percent compared to last year. On a constant currency basis, total revenue decreased 6.6 percent.
The company said in a statement that retail sales declined in the mid-single-digits with trends being impacted by softening luxury consumer demand primarily in the Americas as well as by the Michael Kors Americas ecommerce implementation issues. In wholesale, revenue decreased in the low-teens driven by softer demand in the Americas and EMEA.
Commenting on the third quarter results, John D. Idol, the company's chairman and CEO, said: "Overall, our performance in the third quarter continued to be impacted by softening demand for fashion luxury goods. However, sales trends improved sequentially in the third quarter, driven by better results in our own retail channel while sales in our wholesale channel remained challenged.”
Highlights of Capri Holdings’ Q3 operating results
Gross profit and adjusted gross profit for the third quarter declined to 928 million dollars and gross margin was 65 percent.
Net income decreased to 105 million dollars or 88 cents per diluted share, while adjusted net income dropped to 142 million dollars or 1.20 dollars per diluted share.
Review of Capri Holdings results across core brands
Versace revenue of 227 million decreased 8.8 percent on a reported basis and 10.8 percent on a constant currency basis driven by softening consumer demand in the Americas and EMEA partially offset by increased revenue in Asia. Retail sales declined in the low-single-digits while wholesale revenue decreased double-digits.
Revenue in the Americas declined 14 percent, while revenue in EMEA decreased 13 percent and revenue in Asia increased 10 percent.
Jimmy Choo revenue of 166 million dollars decreased 1.2 percent on a reported basis and 3 percent. Retail sales were approximately flat while wholesale revenue decreased mid-single-digits. Revenue in the Americas declined 11 percent, while revenue in EMEA was flat and revenue in Asia increased 9 percent.
Michael Kors revenue of 1.03 billion dollars decreased 5.6 percent on a reported basis and 6.2 percent on a constant currency basis. Retail sales declined in the mid-single-digits while wholesale revenue decreased low-double-digits. Revenue in the Americas declined 7 percent, while revenue in EMEA decreased 2 percent and revenue in Asia declined 2 percent.