“Capri Holdings' second quarter results were below our expectations due to macroeconomic headwinds as well as e-commerce implementation-related challenges. In early July, we implemented a new e-commerce platform for Michael Kors in the Americas. While we are excited about the long-term benefits, the transition negatively impacted our second quarter results. Additionally, during the quarter consumer demand for fashion luxury goods softened primarily in the Americas”, commented John D. Idol, the Company's Chairman and Chief Executive Officer.

Second Quarter Results

In the three months to the 30^th of September, Capri’s total revenue amounted to 1.29 billion US dollars, decreasing by 8.6%, on a comparable basis to the same period of 2022; on a constant currency basis, it declined by 10.1%. The company attributed this result to “softening consumer demand primarily in the Americas as well as the Michael Kors Americas Ecommerce implementation”.

Versace added 280 million US dollars to the total revenue in this second quarter, down by 9.1% on a reported basis and by 11.7% on a constant currency basis year-over-year; Jimmy Choo’s revenue totalled 132 million US dollars, down by 7.0% on a reported basis and by 9.2% on a constant currency basis year-over-year; and Michael Kors contributed 879 million US dollars, down by 8.6% on a reported basis and by 9.7% on a constant currency basis year-over-year.

In the second quarter of fiscal 2024, the company’s gross profit reached 832 million US dollars and its gross margin was 64.4%, as compared to 951 million US dollars and 67.4% recorded in a similar period of the previous fiscal year.

Capri Holdings’ net income totalled 90 million US dollars, or 0.77 US dollars per diluted share, in the three months to the end of September, on a comparable basis to a net income of 224 million US dollars, or 1.63 US dollars per diluted share registered in the same period a year ago. Accordingly, adjusted net income was 133 million US dollars, or 1.13 US dollars per diluted share, as compared to the 254 million US dollars, or 1.79 US dollars per diluted share, recorded in the second quarter of 2022.

Outlook

The company decided not to provide financial guidance due to the proposed merger transaction of Capri Holdings and Tapestry.

“We look forward to the successful completion of the merger transaction with Tapestry in calendar year 2024. We are confident that this combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company. By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands”, concluded Idol.