Capri Holdings and Tapestry beat expectations during the April-June quarter. But forecasts are still gloomy. Luxury footwear brands Jimmy Choo and Stuart Weitzman suffer during the period.
Better than expected
Capri Holdings, which owns Michael Kors, Versace and Jimmy Choo, closed its 1st fiscal quarter of 20/21 on June 27th, beating expectations and recording a revenue of 451 million USD, -66.5% at current rates and -66.2% at constant rates. Refinitiv’s IBES analysts, cited by Reuters, had forecasted revenue to be at around 424.5 million USD.
The group had declared it expected sales to drop by 70% for this quarter, while this 1st quarter’s net loss (retified) was of 156 million USD, down from the 145 million USD of net profits recorded the same quarter of the previous fiscal year. The group was supported by the recovery of demand for Versace and Jimmy Choo’s products in China and a 30% increment of online sales. John D. Idol, president and CEO of the group was satisfied with the outcome but remains cautious: demand will return to previous levels only during the next fiscal year.
Capri Holdings’s brands
Versace brought 93 million USD of sales to the group’s quarter (-54.1% at constant rates), along with an operational loss of 41 million. Jimmy Choo’s revenue was of 51 million USD (-67.7% at constant rates) and 29 in operational losses. Micheal Kors sold goods for 307 million USD (-68.5% at constant rates), with a loss of 48 million USD.
Tapestry, owner of Coach, Kate Spade and Stuart Weitzman closed the quarter on June 27th and beat expectations. The holding’s revenue was of 714.8 million USD, down 52% at constant rates, compared to the same period of the previous year. Result is well above the 663.4 million USD expected by analysts cited by Reuters. The group’s loss was of 293.8 million USD. The result was achieved thanks to the recovery of sales in China and cost-cutting initiatives. Data for the fiscal year 19/20 highlights an 18% decrease at both constant and current rates.
Revenue was of 4.96 billion USD, with an operational loss of 652 million USD, against the 643 million USD of the previous year’s same period. Specifically, Coach sold goods for 3.5 billion USD (-17%), Kate Spade -16% and Stuart Weitzman -26%. Tapestry forecasts stable sales during the year 20/21, compared to the previous fiscal period, and expects growth to come only in the second half of the period (in 2021).
- Capri Holdings estimates -70% revenue in the April-June period
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