Capri Holdings announced on Wednesday that fourth-quarter revenues dropped by 8.4% to $1.223 billion, driven by a mid-single-digit decline in retail sales.
The owners of Michael Kors, Versace, and Jimmy Choo brands reported that weakening global demand for luxury fashion goods affected total company retail sales. In the wholesale segment, revenue fell by the high teens due to softer demand in the Americas and EMEA.
In addition, Versace’s revenue declined by 3.6% to $264 million by brand. This decrease was driven by a 1% drop in the Americas and an 11% drop in the EMEA region, which overshadowed a 6% increase in Asia.
Jimmy Choo’s revenue fell by 9.3% to $137 million, with declines observed across all markets. Revenue in the Americas dropped by 9%, in EMEA by 6%, and in Asia by 14%.
Also, sales of the Michael Kors brand declined by 9.7% to $822 million, with further decreases across markets. Revenue in the Americas dropped by 9%, in EMEA by 7%, and in Asia by 16%.
Next, net losses widened to $472 million, or $4.03 per diluted share, compared to a net loss of $34 million, or $0.28 per diluted share, in the previous year.
“We are disappointed with our overall results as the fourth-quarter performance continued to be affected by weakening global demand for luxury fashion goods. In our retail channel, sales trends showed sequential improvement in the Americas and EMEA, although trends slowed in Asia. In our wholesale channel, sales remained challenging,” stated John D. Idol, the company’s chairman and chief executive officer.
“Versace, Jimmy Choo, and Michael Kors continued to attract consumers, as demonstrated by the addition of 11.6 million new consumers to our databases, marking a 14% growth compared to last year. This underscores our three iconic houses’ enduring value and strong brand equity. Moving forward, we remain committed to executing our strategic initiatives to achieve long-term sustainable growth across each of our luxury brands.”
The earnings update precedes Capri’s previously announced merger with its U.S. fashion conglomerate counterpart, Tapestry Inc.
As Capri Holdings navigates through evolving market dynamics and strategic transitions, the company remains dedicated to upholding the legacy of its iconic brands and fostering sustainable growth. With a commitment to innovation and consumer resonance, Capri looks forward to shaping the future of luxury fashion.
