John D. Idol, the company’s Chairman and Chief Executive Officer, commented: "For the third quarter, we were pleased to deliver revenue and earnings per share above our expectations. Our revenue increase reflected the addition of Versace and growth from Jimmy Choo, while Michael Kors revenue was better than anticipated. The strategic initiatives for our recent acquisitions, Versace and Jimmy Choo, continue to gain traction, and we believe we are on the right path to position Michael Kors for future growth. Longer term, as we continue to execute against our strategies, we are confident in our ability to deliver multiple years of revenue and earnings growth".

Total revenue for Capri Holdings registered 1.571 billion US dollars in the third quarter, increasing by 9.2% compared to similar period last year. On a constant currency basis, total revenue increased by 9.6%. Gross profit was 932 million US dollars and gross margin was 59.3%, compared to 873 million US dollars and 60.7% in the prior year. Adjusted gross profit was 934 million US dollars and adjusted gross margin was 59.5%, compared to 874 million US dollars and 60.8% in the prior year. Net income was 210 million US dollars, or 1.38 US dollars per diluted share compared to 200 million US dollars, or 1.33 US dollars per diluted share in the prior year. Adjusted net income totalled 253 million US dollars, or 1.66 US dollars per diluted share, compared to 265 million US dollars or 1.76 US dollars per diluted share in the prior year.
 

Versace revenue int he period totalled 195 million US dollars and comparable store sales increased in the mid single digits on a constant currency basis compared to stand-alone results from the prior year. Versace continued to deliver double digit comparable store sales growth in the Americas and EMEA. Versace operating loss was 12 million US dollars and operating margin was (6.2)%. Adjusted operating loss was 10 million US dollars and adjusted operating margin was (5.1)%.

Jimmy Choo revenue of 165 million US dollars increased by 1.9% compared to the prior year on both a reported and constant currency basis. On a constant currency basis, comparable store sales were flat. Comparable store sales increased in the Americas and EMEA. Jimmy Choo operating income was 9 million US dollars and operating margin was 5.5%, compared to operating income of 15 million US dollars and operating margin of 9.3% in the prior year. In the prior year, adjusted operating income totalled 16 million US dollars and adjusted operating margin was 9.9%.

Michael Kors revenue of 1.211 billion US dollars decreased by 5.1% compared to the prior year. On a constant currency basis, total revenue decreased by 4.7%. On a constant currency basis, comparable store sales decreased in the low single digits. Michael Kors operating income was 288 million and operating margin was 23.8%, compared to 320 million US dollars and 25.1% in the prior year.

During the fourth quarter of fiscal 2020, there has been an outbreak of coronavirus in China which the company expects will materially impact its financial results. As of the 5^th of February 2020, approximately 150 of the company’s 225 stores in mainland China are closed. Additionally, most of the stores that remain open are operating with reduced hours and experiencing significant declines in customer traffic. Mr. Idol commented: “We are in the midst of a dynamic global health emergency related to the coronavirus (...) The situation in China and the measures being taken to protect the population are having a material impact on our business". Given the dynamic nature of these circumstances, the company currently expects the situation in China to reduce revenue by approximately 100 million US dollars. This estimate could materially change if the severity of the situation worsens, including potential broader impact on the business outside the region if outbound travel and tourist traffic is further restricted out of China and into other countries and regions. The company now expects total revenue for the current fiscal year to be of approximately 5.65 billion US dollars, with operating margin of approximately 13.7% and diluted earnings per share of 4.45 US dollars to 4.50 US dollars.