“Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods. We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment. Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury house”, commented John D. Idol, the company’s Chairman and Chief Executive Officer.

First Quarter Results

In the three months to the 29^th of June, Capri’s revenue amounted to 1.07 billion US dollars, reflecting a decrease of 13.2% on a comparable basis to the same period of last year; on a constant currency basis, revenue decreased by 12.1%. The company attributed the decline to weaker global demand for luxury fashion goods.

In this period, Versace contributed 219 million US dollars to the company’s total revenue, down by 15.4% on a reported basis and 14.3% on a constant currency basis, Jimmy Choo contributed 173 million US dollars, down by 5.5% on a reported basis and 3.8% on a constant currency basis, and Michael Kors contributed 675 million US dollars, down by 14.2% on a reported basis and 13.3% on a constant currency basis, as compared to the first quarter of fiscal 2024.

Capri Holdings reported a decrease in gross profit to 689 million US dollars and a decrease in gross margin to 64.6% in the first three months of fiscal 2024, on a comparable basis to a gross profit of 812 million US dollars and a gross margin of 66.1% in a similar period of the previous year. This performance was mainly driven by lower full-price sell-through.

In the first quarter of the current fiscal year, the company recorded a net loss of 14 million US dollars, or a loss of 0.11 US dollars per diluted share, as compared to a net income of 48 million US dollars, or 0.41 US dollars per diluted share, in the first quarter of the last fiscal year. Adjusted net income was 4 million US dollars, or 0.04 US dollars per diluted share, as compared to 88 million US dollars, or 0.74 US dollars per diluted share, in the same prior year period.