Quarterly sales down at Versace, Jimmy Choo

August 12, 2024

Versace, Jimmy Choo and Michael Kors witnessed sales dips across the globe. Image credit: Capri Holdings

By Zach James for Luxury Daily News Service

U.S. fashion group Capri Holdings is reporting a net operational loss for the first quarter of its 2025 fiscal year, which ended June 29, 2024.

During the period, the company grossed $1.06 billion, a declining 13.2 percent year-over-year on a reported basis. Quarterly revenues fell at all three of the corporation’s subsidiaries, with their poor performances attributed to the ongoing global luxury slowdown.

“Overall, we were disappointed with our first quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods,” said John D. Idol, chairman and CEO of Capri Holdings, in a statement.

“We are continuing to manage our operating expenses and inventory levels carefully in light of the challenging global retail environment,” Mr. Idol said. “Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 12.6 million new consumers added across our databases, representing 15 percent growth versus last year; this reflects the strong brand equity and enduring value of our three iconic houses.

“Looking forward, we remain focused on executing our strategic initiatives to deliver long-term sustainable growth across each of our luxury houses.”

Downward trend
From the beginning of April to the end of June 2024, Versace, Jimmy Choo and Michael Kors all witnessed revenue declines in the Americas, Europe, the Middle East, Africa and Asia.

Quarterly revenues have fallen 8.4 percent on a reported basis y-o-y. Image credit: Capri Holdings More than 10 million new customers bought Michael Kors items last quarter. Image credit: Capri Holdings

The Italian fashion label generated $219 million during the period, a 15 percent y-o-y drop, with sales in EMEA and the Americas seeing the largest fall-offs, dipping by 22 percent and 15 percent, respectively. Despite this, the brand added 1.3 million new customers during the quarter, a 20 percent jump compared to last year.

During the stretch, Michael Kors brought in $675 million, declining by double-digits in each major business region. Asia’s intake softened by 23 percent, with EMEA and the Americas following suit to the tune of 21 percent and 10 percent respectively.

Meanwhile, Jimmy Choo remained mostly stagnant, with revenues decreasing by 5.5 percent, garnering $173 million by the end of June. EMEA and the Americas witnessed low-single-digit deficits, with the Asian market receding by 17 percent y-o-y.

Capri Holding’s overall declining cash intake in the Q1 of FY2025 continues a trend established during the group’s 2024 fiscal year (see story). The group maintains a positive outlook for the remainder of the year, as it is set to contest the U.S. Federal Trade Commission’s lawsuit (see story) against its merger with fellow U.S. fashion group Tapestry in court next month.

Tapestry owns Coach, Kate Spade and Stuart Weitzman. Image credit: Tapestry Inc. The FTC alleges that Tapestry would gain an unshakably dominant position in the luxury handbag space from the deal. Image credit: Tapestry Inc.

“In April, the FTC filed a lawsuit to block the proposed transaction,” said Mr. Idol, in a statement.

“As we previously stated, Capri intends to vigorously defend this case alongside Tapestry and we look forward to the successful completion of the pending acquisition,” he said. “This combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company.

“By joining with Tapestry, our brands will have greater resources and capabilities to accelerate the expansion of their global reach while preserving their unique DNA.”

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