Capri Holdings Limited, the parent company of renowned luxury brands Versace, Jimmy Choo, and Michael Kors, has recently disclosed its revenue performance for the first quarter of fiscal year 2021, as well as its annual performance for the entire fiscal year. Despite the closure of approximately 60% of its stores in the EMEA region during the first quarter, Capri Holdings has managed to maintain stable quarterly results. The company reported a revenue of $1.197 billion for the quarter, only slightly higher than the $1.192 billion recorded during the same period in 2020. One significant factor contributing to the company’s positive performance has been the growth of its e-commerce business, resulting in a gross profit of $737 million.
Analyzing the individual brand performances within Capri Holdings, Jimmy Choo experienced an impressive growth of 15.9% in revenue, reaching a total of $124 million. Similarly, Versace witnessed a notable sales increase of 10.3%, generating $235 million in revenue. On the contrary, Michael Kors observed a decline of 3.9% in revenue, dropping from $872 million in Q1 2020 to $838 million in Q1 2021. As a response to this decline, Michael Kors intends to revise its strategy in the coming months to strengthen its position in the market and improve profit margins.
Looking at the overall performance of Capri Holdings for the fiscal year 2021, spanning from March 29, 2020, to March 27, 2021, the company reported a significant decrease in revenue of 26.9%. This decline led to a drop from $5.5 billion in the previous year to $4 billion. The decrease in revenue from both Jimmy Choo and Michael Kors, at 25% and 30% respectively, directly impacted Capri Holdings’ gross profit.
Despite the challenges faced by the luxury fashion industry during the pandemic, Capri Holdings is determined to gradually regain its pre-COVID growth trajectory for the fiscal year 2022. The company has projected sales for the current year to reach $5.1 billion.
These financial results highlight the profound impact of the pandemic on luxury fashion brands and emphasize the significance of e-commerce in mitigating the consequences of store closures. As the world begins to emerge from the effects of the global health crisis, Capri Holdings remains optimistic about its future prospects and strives to recapture its prominent position as a leading player in the luxury fashion industry.
Useful Links:
Capri Holdings Limited Official Website
Versace Official Website
