Capri Holdings Ltd.’s first-quarter sales missed Wall Street estimates, dragged down by its Michael Kors brand.
Total revenue for the quarter ended June 29 came in at $1.35 billion. While this was up 11.9 percent compared to last year, it was below analysts’ average estimate of $1.37 billion, according to Refinitiv.
Michael Kors revenue was $981 million, down 4.8 percent compared to the prior year. Jimmy Choo revenue fell 8.7 percent to $158 million and Versace revenue was $207 million.
Net income was $45 million, or 30 cents a diluted share, down from $186 million, or $1.22 a diluted share in the prior year. This year includes a $97 million store impairment charge largely attributable to the Michael Kors retail fleet.
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Adjusted net income was $145 million, or 95 cents a diluted share, compared to $201 million, or $1.32 a diluted share last year.
“Fiscal 2020 will be an investment year for Capri Holdings. We are investing in Versace and Jimmy Choo to position these preeminent luxury houses for long-term revenue growth and margin expansion,” said John D. Idol, the company’s chairman and chief executive officer.
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“We are also executing on our strategic initiatives at Michael Kors to return the brand to growth. With the power of Versace and Jimmy Choo, and the strength of Michael Kors, we remain confident that our three iconic, founder-led fashion brands position Capri Holdings to grow revenue to $8 billion over time and deliver multiple years of earnings growth.”
