Capri Holdings’ Jimmy Choo and Versace hit “record revenues”

Luxury fashion group, Capri Holdings Limited, saw revenues total £1.07 billion ($1.35 billion) in Q4 of fiscal 2023, thanks to record-breaking Versace and Jimmy Choo sales.

In the fourth quarter, which ended 1 April 2023, total revenues were £1.07 billion ($1.335 billion), which was down by 10.5% year-on-year.

Adjusted gross profit was £694 million ($863 million) and adjusted gross margin was 64.6%, compared to £765 million ($951 million) and 63.7% in the prior year.

In terms of brands, Versace’s revenue of £220 million ($274 million) decreased by 13% compared to the prior year. Versace’s operating income was £11 million ($14 million) and its operating margin was 5.1% compared to an operating income of £40 million ($50 million) and operating margin of 15.9% in the prior year.

In the fourth quarter, Jimmy Choo’s revenue of £121 million ($151 million)n decreased by 3.2% compared to the prior year. Its operating loss was £5 million ($7 million) and its operating margin was (4.6)%, compared to £12 million ($15 million) and an operating margin of (9.6)% in the prior year.

Michael Kors’ revenue of £732 million ($910 million) decreased by 10.9% compared to the prior year. On a 13-week constant currency basis, total revenue decreased by 2.2%. Its operating income was £118 million ($147 million) and its operating margin was 16.2%, compared to an operating income of £168 million ($210 million) and operating margin of 20.6% in the prior year.

Throughout fiscal 2023, Capri Holdings focused on accelerating the growth of accessories across all houses. In particular, retail sales of women’s accessories increased by over 40% at Versace, over 20% at Jimmy Choo and low-single-digits at Michael Kors.

It also continued to grow footwear across all brands, which was reflected in retail sales.

However, the company sites a "number of external factors" that stood to challenge its finances. These included "changes in global macroeconomic conditions, greater than anticipated inflationary pressures, further considerable fluctuations in foreign currency exchange rates, COVID-19 variants and other COVID related disruptions".

Looking ahead, the company expects to turn approximately £4.6 billion ($5.7 billion) in revenues for the fiscal year 2024, with an operating margin of approximately 16.5%.

John D. Idol, Chairman and Chief Executive Officer of Capri Holdings, commented: ".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.

"With Versace, Jimmy Choo and MichaelKors we have three incredibly powerful brands to drive our future growth. 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.

"Looking to fiscal 2024, we anticipate revenue will increase low-single-digits and earnings per share will increase mid-single-digits. Beyond fiscal 2024, we remain confident in our ability to achieve our long-term goals over time due to the resilience of the luxury industry, the strength of our three powerful iconic brands and the talented group of employees executing our strategic initiatives."

This news follows Versace and Dua Lipa's highly-anticipated collaborative collection "La Vacanza", which showcased barbie-core styles accompanied by chunky gold hardware on a Cannes runway last week.