Slightly more than half of the Michael Kors, Versace and Jimmy Choo parent company’s global store fleet is now open as many parts of the world begin to emerge from lockdown. But the fashion house hopes to have the remaining stores open by July.
“The COVID-19 pandemic has profoundly impacted our lives and our business in ways we could not have anticipated,” John Idol, Capri’s chairman and chief executive officer, said in a statement. “We have a portfolio of three iconic, founder-led fashion luxury houses that continue to inspire passion and enthusiasm with their customers. As the world emerges from the global shutdown we believe our consumers will once again express themselves through fashion and luxury. We remain confident and optimistic about the long-term opportunities for each of our unique luxury houses.”
The company, which includes Italian atelier and shoe manufacturer Alberto Gozzi Srl in Pistoia, Tuscany, in the greater portfolio, has about 1,270 stores around the world.
Like many retailers, Capri shut down all of its stores outside of Asia in mid-March to prevent the spread of the coronavirus. At the time, the company said stores would remain shut until April 10. On April 11, the retailer began furloughing associates — roughly 7,000 employees — and said stores outside of China would be closed until June 1.
As of Thursday, less than 15 percent of the 455 stores in the Americas have reopened and about 60 percent of 318 stores in Europe, the Middle East and Africa have reopened, with sales reaching about half their pre-pandemic levels in Europe, the Middle East and Africa, compared with the same time last year.
In Greater China, all 288 stores in the region are now open after closing in January. Sales at Michael Kors in mainland China have reached about 80 percent of previous volumes in April and May, compared with the same time last year. Versace and Jimmy Choo were flat during the same period. In other parts of Asia, including Japan and South Korea, the 210 stores began closing in February. About 70 percent are now open.
Meanwhile, with stores closed, the company said engagement in its online businesses grew across all three brands. Versace and Michael Kors online sales nearly doubled in April and May, compared with a year earlier.
When stores finally do reopen, health precautions will look a lot like the rest of the fashion industry: deep cleaning, limited store hours, employee temperature checks, contactless payments, face masks, hand sanitizers, limited store capacities and distancing markers on floors.
“As we reopen our stores around the world, we are prioritizing the health and safety of our employees, customers and communities,” Idol said. “We are taking a prudent and measured approach to reopening our stores to ensure all necessary precautions are in place while maintaining the exceptional in-store experience our customers expect from our luxury houses.”
In February, executives said Capri was expecting a $100 million revenue loss during the quarter ending March 28 because of the coronavirus. The retailer has not yet released the date of its next earnings call, but a representative said it would likely be the end of June.
Shares of Capri, which opened about 4.5 percent down at the start of Thursday’s trading session, have fallen more than 56 percent year-over-year.