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Capri sales continue to wane across all brands as soft luxury demand lingers in the Americas

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Capri Holdings announced on Thursday revenues fell 5.6% to $1.43 billion for the third quarter, with retail segment sales hurt by softening luxury consumer demand primarily in the Americas.

Versace – Spring-Summer2024 – Womenswear – Italie – Milan – © Launchmetrics

The owner of Michael Kors, Versace and Jimmy Choo brands said total company retail sales declined in the mid-single-digits, impacted by softening luxury consumer demand primarily in the Americas, as well as by the Michael Kors Americas e-commerce implementation.

In wholesale, revenue decreased in the low-teens driven by softer demand in the Americas and EMEA.

By brand, Versace revenue fell 8.8% to $227 million, with the Americas and EMEA regions dragging down a 10% uptick in Asia.

Jimmy Choo revenue fell 1.3% to $166 million, on flat sales in EMEA and a 9% increased in Asia, offset by an 11% plunge in the Americas.

Finally, Michael Kors brand sales fell 5.6% to $1.03 billion, clocking single-digit declines in all markets.

Net income was $105 million, or $0.88 per diluted share, compared to $225 million, or $1.72 per diluted share, in the prior year.

“Overall, our performance in the third quarter continued to be impacted by softening demand for fashion luxury goods. However, sales trends improved sequentially in the third quarter, driven by better results in our own retail channel while sales in our wholesale channel remained challenged,” said John D. Idol, the company’s chairman and chief executive officer.

“Additionally, we were pleased to have resolved the Michael Kors Americas e-commerce implementation issues discussed last quarter and our platform is now running smoothly. Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 10.7 million new consumers added across our databases, representing 13% growth versus last year. In fact, we achieved a new milestone, with our database surpassing 90 million customers. This reflects the strong brand equity and enduring value of our three iconic houses.”

The earnings update comes ahead of Capri’s previously announced merger with rival U.S. fashion conglomerate Tapestry Inc, who also reported its financial performance for the September-December quarter on Thursday. The owner of Coach said net sales rose to $2.08 billion in the quarter ended December 31.

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