Capri Holdings sees Q2 revenues rise 8.6%

Capri Holdings Limited, owner of Versace, Jimmy Choo and Michael Kors, has released its financial results for the second quarter ending 1 October 2022, revealing an 8.6% revenue increase in constant currency to £1.24 billion ($1.41 billion).

Gross profit was £835.1 million ($951 million) and gross margin was 67.4%, compared to £776.3 million ($884 million) and 68.0% in the prior year. Adjusted gross profit was £832.5 million ($948 million) and adjusted gross margin was 67.1%.

Net income was £196.7 million ($224 million), or $1.63 per diluted share, compared to £175.6 million ($200 million), or $1.30 per diluted share, in the prior year.

Versace Second Quarter Fiscal 2023 Results:

• Revenues reached £270.5 million ($308 million), increasing 9.2% compared to the prior year.
• Operating income was £54.5 million ($62 million), compared to $55 million in the prior year.

Jimmy Choo Second Quarter Fiscal 2023 Results:

• Revenue increased 3.6% on a constant currency basis to £124.7 million ($142 million).
• Operating income was £7.03 million ($8 million), compared to £880,000 in the prior year.

Michael Kors Second Quarter Fiscal 2023 Results:

• Revenue increased 9.2% on a constant currency basis to £845 million ($962 million).
• Operating income was £217.8 million ($248 million), compared to £193.2 million ($220 million) in the prior year.

Looking ahead to FY23, the group now expects revenue of approximately £5.01 billion ($5.7 billion) and operating margin of approximately 18.3%.

John D. Idol, Chairman and CEO of Capri Holdings Limited, said: "We are pleased with our second quarter performance as we delivered strong revenue growth and record earnings per share. Results were driven by momentum across all three of our luxury houses reflecting the power of Versace, Jimmy Choo and Michael Kors as well as the continued execution of our strategic initiatives. Most importantly, Capri Holdings' success is a testament to the hard work and dedication of our teams across the globe.

"Looking at the remainder of Fiscal 2023, we are now taking a more cautious view with our revenue outlook due to an increasingly uncertain macroeconomic environment, foreign currency headwinds and the ongoing impact of COVID related restrictions in China. At the same time, we are pleased to maintain Capri’s earnings per share guidance for the year, reflecting higher gross margin expectations, diligent expense management and reduced share count as a result of our ongoing share repurchase program.

"Beyond Fiscal 2023 we remain optimistic about the long-term potential for Versace, Jimmy Choo and Michael Kors. Our powerful brands have enduring value and proven resilience, reinforcing our confidence in the ability to deliver strong revenue and earnings growth over time."