Capri Holdings Limited, the parent of luxury labels Michael Kors, Versace, and Jimmy Choo, has reported a 9.6 percent drop in first-quarter revenue to 1.23 billion dollars.
The financial update comes the same day it was revealed that luxury group Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, is to acquire Capri in a deal worth approximately 8.5 billion dollars.
Commenting on the development, Capri chair and CEO John D. Idol said: “As announced earlier today, the planned acquisition of Capri Holdings by Tapestry marks a major milestone for our company. We are confident this combination will deliver immediate value to our shareholders.”
Highlights of Capri Holdings Q1 results
Capri’s net profit in the quarter narrowed to 48 million dollars from 201 million dollars the prior year, while adjusted net income fell to 88 million dollars from 215 million dollars.
The company’s gross profit for the quarter decreased to 812 million dollars from 900 million million dollars, and gross margin was 66.1 percent compared to 66.3 percent.
Breaking it down by brand, Michael Kors, the group’s biggest label, posted revenue of 787 million dollars, a drop of 13.8 percent year-on-year, or 13.4 percent on a constant currency basis.
Meanwhile, Versace revenue of 259 million dollars decreased 5.8 percent on both a reported and constant currency basis, while Jimmy Choo revenue of 183 million dollars increased 6.4 percent or 7 percent on a constant currency basis.