John D. Idol, the Company’s Chairman and Chief Executive Officer, commented: “For the second quarter, we were pleased to deliver a double digit increase in revenue, driven by the addition of Versace and growth from Jimmy Choo. Michael Kors revenue was in line with our expectations and we are extremely pleased to report that the brand returned to positive comparable store sales during the quarter, led by our successful efforts across product innovation, brand engagement and customer experience. Second quarter earnings per share were below our expectations, reflecting higher expenses due to timing, as well as greater than anticipated challenges related to the situation in Hong Kong.”

Capri Holdings Second Quarter

The group posted total revenue of 1.442 billion US dollars, increasing by 15.1% compared to last year. On a constant currency basis, total revenue increased by 16.1%. Net income totalled 73 million US dollars, or 0.47 US dollars per diluted share compared to 138 million US dollars, or 0.91 US dollars per diluted share in the prior year. Adjusted net income was 177 million, or 1.16 US dollars per diluted share, compared to 192 million US dollars or 1.27 US dollars per diluted share in the prior year.

   

Versace

Versace revenue was 228 million US dollars and comparable store sales were flat on a constant currency basis compared to stand-alone results from the prior year. Versace continued to deliver double digit comparable sales growth in the Americas and EMEA, but experienced declines in Asia as the region was affected by greater than anticipated challenges related to the situation in Hong Kong and consumer reaction in China to a incorrectly labelled product. Versace operating income totalled 9 million US dollars and operating margin was 3.9%. Adjusted operating income was 14 million US dollars and adjusted operating margin was 6.1%.

Jimmy Choo

This segment's revenue totalled 125 million US dollars, an increase of 7.8% compared to the prior year. On a constant currency basis, total revenue increased by 9.5%. On a constant currency basis, comparable store sales declined in the mid-singl e digits. Comparable store sales were impacted by weaker performance in Hong Kong and a decline in Japan. Excluding Hong Kong and Japan, comparable stores would have been flat.

Michael Kors

Revenue of 1.089 billion US dollars was registered by Michael Kors, a decrease of 4.2% compared to similar period in the previous year. On a constant currency basis, total revenue decreased by 3.3%. On a constant currency basis, comparable store sales increased in the low single digits.

Outlook

For the full year 2020 the company now expects total revenue for the Capri group to be approximately 5.8 billion US dollars. Third quarter fiscal 2020 outlook is forecasting total revenue of approximately 1.53 billion US dollars for the Capri group, of which revenue of approximately 180 million US is expected for Versace, 165 million US dollars for Kimmy Choo and 1.2 billion US dollars for Michael Kors.