Capri Holdings revenues up almost 14% in Q4
Capri Holdings Limited, parent of Michael Kors, Jimmy Choo and Versace, has announced an almost 14% increase in revenues for Q4 of fiscal year 2019 ending 30 March.
According to its latest figures, total revenue of $1.344bn were up 13.9% compared to last year and gross profit was $793m and gross margin was 59%, compared to $710m and 60.2% in the prior year. Income from operations was $40m and operating margin was 3%, compared to $87m and 7.4% in the prior year.
Versace revenue was $137m (Capri Holdings, then Michael Kors Holdings, completed its acquisition of Versace on 31 December 2018) and Jimmy Choo's revenue of $139m increased 28.7% compared to the prior year. However, Michael Kors' revenue of $1.068bn decreased 0.4% compared to the prior year.
For the full fiscal year the group is forecasting total revenue of approximately $6.0bn and an operating margin of approximately 15.5%.
in the next financial year for Versace, the Company plans to execute against its plan to rapidly expand its luxury business, including increasing strategic investments to enhance brand engagement, expanding Versace's retail fleet globally and launching omni-channel capabilities.
For Jimmy Choo, Capri Holdings plans to continue to innovate and grow in women’s footwear, capitalise on the significant opportunity to grow the brand's accessories business and further expand Jimmy Choo's retail fleet.
For Michael Kors, the Company plans to maintain its focus on product innovation as well as expanding its successful signature offerings. It plans to continue to increase brand engagement by leveraging Michael's leading social media presence and enhancing its 360 degree marketing efforts.
John D. Idol, Chairman and Chief Executive Officer of Capri Holdings, said: “Fiscal 2019 was a transformational year for Capri Holdings. We expanded our fashion luxury group with the addition of Versace, one of the world’s most storied Italian luxury brands. Jimmy Choo delivered strong results and we continued to execute against Michael Kors’ three strategic growth pillars of product innovation, brand engagement and customer experience. For the year, we were pleased that our luxury group delivered both double digit revenue and adjusted earnings per share growth.
“Looking ahead, Fiscal 2020 will be an investment year for our group, and we believe our initiatives will deliver strong revenue growth for Capri Holdings. Longer term, our three brands position Capri Holdings to accelerate revenue from $6 billion to $8 billion dollars, which will be led by Versace and Jimmy Choo, with Michael Kors remaining a strong foundation for Capri Holdings.
“We expect to grow Versace from $900m to $2bn dollars in revenue, expand Jimmy Choo from nearly $600m to $1bn in revenue, while building Michael Kors from $4.5bn to $5.0bn in revenue. Taken together, we believe our three iconic, founder-led fashion brands position Capri Holdings to deliver multiple years of earnings growth."