Capri Holdings only registered a couple weeks of the U.S. coronavirus shutdown in its fourth quarter, but still took a big hit as the crisis prompted a $351 million impairment charge in its Jimmy Choo brand.
The overall company, which also operates the Michael Kors and Versace brands, posted a loss of $551 million, or $3.69 a share, for the quarter ended March 28. That tally also included $137 million in store impairment charges and $92 million for higher inventory reserves. A year ago, Capri logged net earnings of $19 million, or 13 cents a share.
Sales for the quarter slipped 11.3 percent to $1.19 billion from $1.34 billion.
John Idol, chairman and chief executive officer, said: “Prior to the impact of COVID-19, our earnings per share outlook was largely on track with our expectations. While we expect fiscal 2021 to be significantly impacted by the effects of the virus, we are encouraged as we reopen our stores globally with initial revenue exceeding our expectations. Capri Holdings has a portfolio of three iconic, founder-led fashion luxury houses that inspire passion and excitement in customers who value design innovation and exceptional quality. Looking ahead, we plan to continue to execute on our growth initiatives. We remain confident in the long-term opportunities for each of our unique luxury brands and believe Capri Holdings is poised to resume its growth trajectory in fiscal 2022.”
About 90 percent of the company’s stores globally have reopened.