"The COVID-19 pandemic continues to profoundly impact the entire world (...) Looking at our progress in the fiscal first quarter, we were encouraged by trends across all three of our luxury houses, with sales and margin performance ahead of our initial expectations. We were particularly pleased with the strong growth of our eCommerce business, as well the sequential improvement in overall revenue trends through the first quarter and into July", commented John D. Idol, the company’s Chairman and Chief Executive Officer.

Mr. Idol concluded: "During these unprecedented times, we plan to continue to execute on our strategic growth initiatives and remain confident in the long-term opportunities for each of our unique global luxury houses. Capri Holdings has a portfolio of three iconic, founder-led fashion luxury brands that have enduring value and a long history of successfully navigating challenging periods. We will continue to carefully guide our business through the current retail environment, while positioning the company to resume its growth trajectory in fiscal 2022."

First Quarter Results

Revenue in the period totaled 451 million US dollars decreasing by 66.5% compared to last year. On a constant currency basis, total revenue decreased by 66.2%. Net loss reached 180 million US dollars, or (1.21) US dollars per diluted share compared to net income of 45 million US dollars, or 0.30 US dollarsper diluted share in the prior year. Adjusted net loss was 156 million Us dollars, or (1.04) US dollars per diluted share, compared to income of 145 million US dollars or 0.95 US dollars per diluted share.

Versace

Versace revenue of 93 million US dollars decreased by 55.1% compared to the prior year. On a constant currency basis, total revenue decreased by 54.1%. Versace operating loss totaled 41 million US dollars and operating margin was (44.1)% compared to an operating loss of 3 million US dollars and operating margin of (1.4)% in the prior year. Last year, adjusted operating income was 3 million US dollars and adjusted operating margin was 1.4%.

Jimmy Choo

Revenue for this business segment reached 51 million US dollars decreasing by 67.7% compared to the prior year on a reported and constant currency basis. Jimmy Choo operating loss was 29 million US dollars and operating margin was (56.9)%, compared to operating income of 11 million US dollars and operating margin of 7.0% in the prior year.

Michael Kors

Michael Kors revenue of 307 million US dollars decreased by 68.7% compared to the prior year. On a constant currency basis, total revenue decreased by 68.5%. Michael Kors operating loss was 48 million US dollars and operating margin was (15.6)%, compared to operating income of 201 million US dollars and operating margin of 20.5% in the prior year.

Fiscal Year 2021 Outlook

Due to the lack of visibility surrounding the pandemic, macroeconomic fundamentals and tourism, Capri believes that the impacts on their financial and operating results cannot reasonably be estimated, therefore, the company is not providing earnings guidance for its fiscal year 2021.