Cost of goods sold was valued at $385 million, up from $459 million in the second quarter of the previous fiscal year. The company's net income was $24 million, or $0.20 per diluted share, compared to net income of $90 million, or $0.77 per diluted share, in the last fiscal year. Adjusted net income was $77 million, or $0.65 per diluted share, compared with $133 million, or $1.13 per diluted share, in the last fiscal year, Capri Holdings Ltd said in its statement. financial.
Capri Holdings has reported Q2FY25 revenue of $1.08 billion, a year-over-year decline of 16.4 percent. Gross profit reached $694 million with a margin of 64.3 percent. Versace, Jimmy Choo and Michael Kors saw mixed results, with sales declines for Versace and Kors but slight growth for Jimmy Choo. Net income was $24 million, up from $90 million year-over-year.
Gross profit margin decreased 10 basis points with favorable channel mix offset by lower overall price sales. Adjusted operating margin was 3.0 percent and adjusted earnings per share were $0.65.
Loss from operations was $38 million and operating margin was (3.5) percent, compared to operating income of $100 million and operating margin of 7.7 percent in the prior year. Adjusted operating income was $32 million and adjusted operating margin was 3.0 percent, compared to $157 million and 12.2 percent a year earlier, according to the news release.
Regarding the brand financial report for the second quarter of fiscal year 25
Versace generated revenue of $201 million, witnessing a 28.2 percent decline in both reported and constant currency terms compared to the previous year. Retail sales declined by 10%, while wholesale revenue declined by double digits. Revenue in the Americas decreased 33 percent, while revenue in Europe, the Middle East and Africa (EMEA) decreased 28 percent and revenue in Asia decreased 20 percent. Versace's global database increased by 1.1 million new consumers, representing 16 percent growth over the past year.
Versace's operating loss was $3 million and operating margin of (1.5) percent, compared to operating income of $35 million and operating margin of 12.5 percent a year earlier. The decrease in operating margin rate was primarily due to deleveraging of expenses due to lower revenues.
Jimmy Choo's revenue of $140 million increased 6.1 percent on a reported basis and 5.3 percent in constant currency compared to the prior year. Retail sales declined by single digits, while wholesale revenue increased by double digits. Revenue in the Americas decreased 8 percent, while revenue in EMEA increased 25 percent and revenue in Asia decreased 8 percent. Jimmy Choo's global database increased by 0.7 million new consumers, representing a growth of 13 percent over the past year.
Jimmy Choo's operating loss was $5 million and operating margin of (3.6) percent, compared to operating loss of $9 million and operating margin of (6.8) percent for the year former. The improvement in the operating margin rate was primarily due to leveraging expenses into higher revenues compared to the prior year, the report said.
Michael Kors' revenue of $738 million decreased 16.0 percent on a reported basis and 15.9 percent in constant currency compared to the prior year. Retail sales declined by mid-single digits, while wholesale revenue declined by double digits. Revenue in the Americas decreased 12 percent, while revenue in EMEA decreased 15 percent and revenue in Asia decreased 43 percent. Michael Kors' global database increased by 9 million new consumers, representing 12 percent growth over the past year.
Michael Kors' operating income was $87 million and operating margin was 11.8 percent, compared to $169 million and 19.2 percent a year earlier. The decrease in the operating margin rate was primarily related to the deleveraging of expenses due to lower revenues.
Semi-annual financial reports (S1)
The total revenue generated by the company in this period was $2.146 billion, up from $2.52 billion the previous year. Cost of goods sold was $763 million, compared to $876 million in the first half of the previous year, and gross profit was $1,383 million, compared to $1,644 million year-on-year. Net income was $11 million, compared to $138 million year over year, and net income attributable to Capri was $10 million, compared to $138 million in the first half of the last fiscal year.
The company's operating expenses were $1,429 million, a slight decrease from $1,464 million a year earlier. Basic earnings per share (EPS) were $0.09, down from $1.18 in the first half of the last fiscal year. Diluted EPS was $0.09, down from $1.17 in the previous fiscal year.
John D Idol, president and CEO of the companysaid: “Overall, we were disappointed with our second quarter results, as performance continued to be affected by declining global demand for luxury fashion items. “Despite the challenging global retail environment, we remain focused on executing our strategic initiatives to achieve long-term sustainable growth across our three luxury houses.”
“Versace, Jimmy Choo and Michael Kors continued to resonate with consumers, as evidenced by the 10.9 million new consumers added to our databases, representing 13 percent growth compared to last year. “This reflects the strong brand equity and enduring value of our three iconic houses,” Idol continued.
Fiber2Fashion News Desk (SG)
