Capri Holdings, the luxury company based in New York, experienced a decline in revenue during the second quarter of the year. Total sales for the quarter dropped by 8.6% to $1.29 billion, with all of its brands – Versace, Jimmy Choo, and Michael Kors – seeing high single-digit declines. The decrease in sales was mainly due to a softening in consumer demand, particularly in the Americas.

In terms of retail sales, Capri saw a decline in the high-single-digits for the quarter. Wholesale revenue also decreased by low-double-digits, primarily due to weaker demand in the Americas. Specifically, Versace’s revenue fell by 9.1% to $280 million, Jimmy Choo’s revenue dipped by 7% to $132 million, and Michael Kors’ revenue decreased by 8.6% to $879 million. The delayed implementation of Michael Kors’ Americas e-commerce site further hindered its revenue.

The net income of Capri for the three months ending September 30 took a significant hit, plummeting to $90 million compared to $224 million in the same period the previous year. The decline in net income was attributed to macro-economic headwinds and challenges related to the implementation of the new e-commerce platform for Michael Kors in the Americas.

Despite these challenges, Capri Holdings remains focused on executing its strategic initiatives to drive long-term sustainable growth. The company’s three luxury brands – Versace, Jimmy Choo, and Michael Kors – continue to resonate with consumers. Over the past year, the company added 11.4 million new consumers across its databases, representing a 15% growth. This demonstrates the strong brand equity and enduring value of Capri’s iconic houses.

The earnings update comes as Capri prepares for its previously announced merger with U.S. fashion conglomerate Tapestry Inc. Tapestry also reported its financial performance for the July-September quarter, with net sales remaining flat at $1.51 billion.

Overall, Capri Holdings faced challenges in the second quarter with declining sales and earnings. However, the company remains optimistic about its long-term growth prospects, driven by its iconic luxury brands and continued consumer resonance.

Links:
Capri Holdings Official Website
Article on Capri Holdings’ Q2 Revenues