Capri Holdings expects to lose 100 million USD due to the current crisis in China, with negative consequences on profits for the fourth quarter, and thus repercussions over the annual income statement. The group shut down 150 stores in China due to the spreading of the coronavirus. “The estimate could further change if the situation worsens”, state the US-based group. Unfortunate, as the third quarter was a succesful one.
The previous period
Capri Holding’s sales during the third quarter were 1.57 billion USD (+9.2%). A result that was above the estimates by FactSet, which had forecasted 1.54 billion. “Our improvement reflected the recent addition of Versace – commented John D. Idol, resident and CEO of the group – as well as Jimmy Choo’s growth. Michael Kors’s performance was also better than expected. The strategic acquisitions we have recently made, Versace and Jimmy Choo, continue to gain ground”.
China’s crisis is unfortunate
Versace’s sales amount to 195 million. The brand “continues to showcase strong double-figure sales in comparable stores in the Americas and EMEA region”. The brand closed the quarter with 12 million in operating losses. Jimmy Choo’s sales, on the other hand, were of 165 million USD (+1.9%), while the income statement read 9 million in profits. Upsetting outcome for Michael Kors: sales decreased to 1.21 billion USD (-5.1%).