The group's gross profit also saw a drop, standing at $928 million, with gross margin falling to 65.0 percent from 66.5 percent a year earlier. Adjustments to gross profit kept it at $928 million, while adjusted gross margin reflected the reported figure at 65 percent, a slight drop from 66.3 percent a year earlier.
American fashion house Capri Holdings saw a 5.6 percent decline in revenue to $1.43 billion in Q3FY24, with declines at Versace, Jimmy Choo and Michael Kors due to lower demand in America and EMEA. The company's gross profit fell to $928 million, net income to $105 million and inventory fell 14 percent to $1.02 billion.
Operating income saw a significant decline, with reported numbers falling to $122 million and an operating margin of 8.5 percent, a stark contrast to the $236 million and 15.6 percent margin a year earlier. Adjusted operating income was reported at $172 million with a 12.1 percent margin, down from $256 million and a 16.9 percent margin a year earlier, the company said in a news release. .
Net income also fell to $105 million, or $0.88 per diluted share, from $225 million, or $1.72 per diluted share, a year earlier. Adjusted net income came in at $142 million, or $1.20 per diluted share, a decrease from $240 million, or $1.84 per diluted share, in the corresponding period a year ago.
Inventory levels as of December 30, 2023 were reported at $1.02 billion, representing a 14 percent reduction from the prior year.
Versace's revenue saw an 8.8 percent decline to $227 million, with retail sales falling below single digits and wholesale revenue experiencing a double-digit decline. The brand reported an operating loss of $14 million, a significant drop from the previous year's operating income of $24 million.
Jimmy Choo's revenue decreased slightly by 1.2 percent to $166 million. Retail sales remained stable, while wholesale revenue saw a mid-single-digit decline. Operating income was $4 million, up from $18 million a year earlier.
Michael Kors reported revenue of $1.03 billion, a decline of 5.6 percent, with both the retail and wholesale sectors facing declines. The brand's operating income was $219 million, a decrease from $251 million a year earlier.
“Overall, our performance in the third quarter continued to be affected by lower demand for luxury fashion items. However, sales trends improved sequentially in the third quarter, driven by better results in our own retail channel, while “Sales in our wholesale channel continued to be difficult. Additionally, we are pleased to have resolved the Michael Kors Americas e-commerce implementation issues discussed last quarter and our platform is now running smoothly,” he said. John D Idol, President and CEO of Capri Holdings.
Fiber2Fashion News Desk (DP)
