Capri Holdings estimates its 1st fiscal quarter of 20201 (April to June) to be very grim. Revenue may drop by up to 70% on yearly base.
The Coronavirus archived the positive results of the previous income statement, as the group that controls Versace, Jimmy Choo and Michael Kors had cosed the year with 5.56 billion USD of revenue (+6%) thanks to the 12-month contribution of Versace. Income before taxes was of -215 million USD.
“We expect the 2021 fiscal year to be influenced by Covid-19 – commented John D. Idol, president and CEO of Capri Holdings -. But we are encouraged by the fact that, as we are reopening our stores around the world, income is above expectations”. Mr. Idol states he remains positive for the long-term, while short term he maintains some concern: the group will begin growing once more in the fiscal year 2022.
The hit had already been felt
Previous fiscal year’s 4th quarter, which closed on March 28th, was already 11.3% down to 1.192 billion USD, for Capri Holdings. The result is in line with Thomson Reuters’ analysts’ expectations, along with the 540 million USD loss.
Versace’s revenue grew by 55.5%, while Jimmy Choo’s performance was of -23%, with Michael Kors at -18.4%. Revenue for the entire year was +6%, compared to the previous. Versace has no year-to-year data, as it was acquired in 2018, but Jimmy Choo and Kors’ incomes dropped by 5.9% and 7.9% respectively.
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