Michael Kors parent company Capri Holdings has reported a double-digit drop in revenue in the fourth quarter as it swung to a loss.
The US fashion group generated revenue of 1.34 billion dollars in the three months to April 1 compared to revenue of 1.49 billion dollars a year earlier. However, the decrease amounted to a less significant 3 percent on a 13-week constant-currency basis.
Despite the drop, the revenue was still ahead of analysts’ estimates, according to data from Refinitiv.
Breaking it down by brand, Michael Kors revenue slumped 10.9 percent on a reported basis to 910 million dollars, Versace revenue dropped 13 percent to 274 million dollars, and Jimmy Choo revenue fell 3.2 percent to 151 million dollars.
Capri swung to a net loss of 34 million dollars in the quarter compared to a profit of 81 million dollars a year earlier.
Capri lowers revenue outlook, but upbeat on Asia recovery
The group lowered its full-year revenue outlook based on its fourth-quarter results. It now expects revenue of approximately 5.7 billion dollars, down from its previous guidance of 5.8 billion dollars.
However, it still expects FY24 diluted earnings per share of approximately 6.40 dollars.
Commenting on the results in a statement, group CEO and chair John D. Idol said: “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.”
Looking ahead, Idol said: “While we recognize that there are near-term uncertainties in the Americas, we are encouraged by the strong trends in Asia and continued growth in EMEA.”