John D. Idol, the Chairman and Chief Executive Officer, stated: “We are pleased with our first quarter results, which reflect 12% revenue growth as well as better than expected operating margin and earnings per share. These results continue to position our company to execute against our strategic initiatives. Based on our first quarter performance, we are reaffirming our earnings per share guidance for fiscal 2020, which includes the impact of the strengthening US dollar and additional tariffs on imports from China (...) 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. 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 US dollars over time and deliver multiple years of earnings growth."

Total revenue of 1.346 billion US dollars increased by 11.9% compared to similar period in the previous year. On a constant currency basis, total revenue increased by 13.8%. Net income reached 45 million US dollars, or 0.30 US dollars per diluted share compared to 186 million US dollars, or 1.22 US dollars per diluted share in the prior year. This year includes a 97 million US dollars store impairment charge, primarily related to lease assets recorded in connection with the adoption of the new lease accounting standard and largely attributable to the Michael Kors retail fleet. Adjusted net income was 145 million US dollars, or 0.95 US dollars per diluted share, compared to 201 million US dollars or 1.32 US dollars per diluted share in the prior year.

Versace revenue totalled 207 million US dollars and comparable store sales increased double digits on a constant currency basis compared to stand-alone results from the prior year. Versace operating loss was 3 million US dollarsand operating margin was (1.4)%. Adjusted operating income was 3 million US dollars and adjusted operating margin was 1.4%.

Jimmy Choo revenue of 158 million US dollars decreased by 8.7% compared to the previous year. On a constant currency basis, total revenue decreased by 5.8%. On a constant currency basis, comparable store sales were flat. Jimmy Choo operating income was 11 million US dollars and operating margin was 7.0%, compared to an operating income of 22 million US dollars and operating margin of 12.7% in the prior year. Adjusted operating income was 25 million US dollarsand adjusted operating margin was 14.5% in the prior year.

Michael Kors revenue of 981 million US dollars decreased by 4.8% compared to similar period last year. On a constant currency basis, total revenue decreased by 3.0%. On a constant currency basis, comparable store sales decreased low single digits. Michael Kors operating income was 201 million US dollars and operating margin was 20.5%, compared to 230 million US dollars and 22.3% in the prior year.

Capri Holdings now expects total revenue of approximately 5.8 billion US dollars, a reduction from prior guidance primarily reflecting additional unfavorable foreign currency impact and lower Michael Kors revenue, predominately related to North America wholesale.