Capri Holdings, the parent company of prestigious brands Michael Kors, Versace, and Jimmy Choo, has announced an upward revision in its annual profit forecast. This positive outlook is a result of the company’s implementation of price increases and the robust demand for its designer handbags and shoes in North America and Europe.
The company now predicts that its earnings per share for fiscal year 2022 will be approximately $5.30, surpassing the previously estimated $4.50 per share. This revision reflects the remarkable performance and increasing profitability of Capri Holdings.
During the second quarter of fiscal year 2022, Capri reported a significant 17% growth in revenue, reaching $1.3 billion compared to the previous year. This revenue increase was observed across all three of its luxury brands, namely Versace, Jimmy Choo, and Michael Kors. The company’s income from operations amounted to $195 million, with an operating margin of 15.0%, demonstrating improvement from the previous year’s figures.
John D. Idol, the Chairman and CEO of Capri Holdings, expressed his satisfaction with the company’s second-quarter results. He attributed the outstanding performance to the strength of their luxury brands and the successful execution of strategic initiatives. Idol further highlighted the company’s confidence in the future growth opportunities for Versace, Jimmy Choo, and Michael Kors, as economies worldwide continue to recover from the impact of the global pandemic.
Despite persistent challenges in the industry, including supply chain delays and increased transportation costs due to the COVID-19 pandemic, Capri Holdings remains optimistic about its ability to overcome these obstacles. The company’s strategic initiatives have proven effective in mitigating these headwinds and driving growth.
In conclusion, Capri Holdings, the parent company of esteemed luxury brands Michael Kors, Versace, and Jimmy Choo, has elevated its annual profit forecast owing to strong demand and price increases. The company’s second-quarter results have exceeded expectations, reflecting the stellar performance of its brands and the successful execution of strategic initiatives. Despite ongoing challenges in the industry, Capri Holdings maintains its confidence in the future growth opportunities for its luxury houses.
