An 11.3% decline in revenue for its fourth quarter, but a 6% revenue growth for its full year ended March 28, 2020 reported by the owner of the Jimmy Choo, Michael Kors and Versace fashion brands.
For the fourth quarter, Capri Holdings’ total revenue amounted to US$1.2 billion, down -11.3% year-on-year. Gross profit was US$631 million and gross margin was 52.9%, compared with US$793 million and 59% in the prior year. Loss from operations totalled US$536 million against an income of US$40 million in the same quarter of the previous year. Net loss for the quarter was US$551 million compared with a net income of US$19 million in the prior year. The Versace brand posted revenue of US$213 million in the period, up +55.5% both on a reported and constant currency basis., and operating loss totalled US$2 million. Jimmy Choo’s revenue amounted to US$107 million, down 23% year-on-year and operating loss was US$23 million for the quarter. Michael Kors revenue totalled US$872 million (-18.4%), with operating income at US$139 million and operating margin at 15.9%, compared with US$166 million and 15.5%, respectively, for the same quarter in the prior year.
In response to the global pandemic, Capri Holdings said that actions to reduce expenses and maintain a strong liquidity position included reduced operating expenses by approximately US$500 million; diligently managing inventory, generating approximately US$400 million of cash flow; reduced capital expenditures by approximately US$150 million; and suspension of the remaining US$400 million under its current share repurchase programme.
Reference:
Capri Holdings fourth-quarter revenue down 11.3% – International Leather Maker. (n.d.). Retrieved July 11, 2020, from https://internationalleathermaker.com/news/fullstory.php/aid/8656/Capri_Holdings_fourth-quarter_revenue_down_11.3_25.html
