Capri Holdings Limited, the fashion conglomerate which owns Versace, Jimmy Choo and Michael Kors, has revealed that revenues decreased 13.2% to £840 million ($1.07 billion) during the first quarter of FY25.
The group, up against the likes of LVMH and Kering, revealed that for the first quarter ending 29 June, adjusted operating margin was 1.5% and adjusted earnings per share sat at £0.03 ($0.04). Gross profit equalled £540 million ($689 million).
Versace’s reported revenue was down by 15.4% to £171 million ($219 million). Retail sales decreased high-single-digits, while wholesale revenue decreased double-digits.
Jimmy Choo was down by 5.5% to £135 million ($173 million). Retail sales decreased mid-single-digits, while wholesale revenue decreased low-single-digits.
Michael Kors revenue dipped by 14.2% to £529 million ($675 million). Retail sales declined in the low teens, while wholesale revenue decreased by high teens.
The dip in sales across all three brands can be attributed to the slowdown in luxury spending. Capri Holdings isn’t the only company to face slipping sales, while powerhouses Burberry and Kering also reporting widening losses. Despite this, LVMH and Hérmes are managing to beat the low tide and report sales strength.
John D. Idol, Chairman and CEO of Capri Holdings, said: “Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment. Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury houses.”
“Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 12.6 million new consumers added across our databases, representing 15% growth versus last year. This reflects the strong brand equity and enduring value of our three iconic houses.”
Last August, Tapestry, the owner of Coach and Kate Spade, purchased Capri Holdings in a deal valued at £6.6 billion ($8.5 billion). Given the pending merger with Tapestry Inc, Capri Holdings is not providing a financial outlook.
