- Capri Holdings beat quarterly revenue and profit estimates, thanks to strong demand for its luxury apparel and accessories in China, as well as surging online sales.
- The company’s strong sales in China echoed recovery trends across the luxury sector.
- Versace, in particular, has seen a strong rebound in demand, and e-commerce sales for the group increased by 60 percent during the quarter, year-on-year.
On November 5, Capri Holdings, which is the parent company of Michael Kors, Versace, and Jimmy Choo, revealed its 2021 second-quarter fiscal results. The global fashion luxury group beat quarterly revenue and profit estimates, thanks to strong demand for its luxury apparel and accessories in China, as well as surging online sales, which sent shares upward by 13 percent.
Capri announced a profit for its second quarter, which was an increase over the same period last year. The global fashion luxury group posted a total revenue loss of $1.1 billion — a 23-percent decrease compared to last year. The company’s gross profit was $710 million, and its gross margin was 64 percent, as compared to $874 million and 60.6 percent in the year prior. Total net income was $122 million.
Sales in China were positive across the conglomerate’s three brands in the second quarter, echoing recovery trends that were also reported by Coach owner Tapestry Inc, Europe's LVMH, and Hermès. Versace, in particular, has seen a strong rebound in demand, with the Italian label recording retail sales growth globally. Meanwhile, e-commerce sales for the group increased by 60 percent during the quarter, year-on-year.
“Our performance demonstrates the power and desirability of the Versace, Jimmy Choo, and Michael Kors brands,” said John D. Idol, Capri’s chairman and chief executive officer, in a statement. “Through creativity and innovation, our luxury houses inspire excitement and passion, creating an emotional connection with our consumers. We are also attracting new consumers to each of our luxury houses, as evidenced by the double-digit increase in our consumer databases.”