The company's retail sales declined by mid-single digits, with the trend primarily influenced by weakening demand for luxury fashion items around the world. In the wholesale sector, revenue decreased by around 10, driven by weaker demand in the Americas and Europe, Middle East and Africa (EMEA) regions.
Capri Holdings reported Q4FY24 revenue of $1.223 billion, a year-over-year decline of 8.4 percent. Retail sales declined to the mid-single digits and wholesale revenue fell into the teens. Gross profit was $767 million with a margin of 62.7 percent. The net loss was $472 million. Versace's revenue fell 3.6 percent, Jimmy Choo's 9.3 percent and Michael Kors's 9.7 percent.
Gross profit for the quarter was $767 million, with a gross margin of 62.7 percent, compared to $867 million and a gross margin of 64.9 percent a year earlier. On an adjusted basis, gross profit remained at $767 million and adjusted gross margin was 62.7 percent, compared to $863 million and 64.6 percent a year earlier, the company said. in a press release.
Capri Holdings reported an operating loss of $543 million, with an operating margin of -44.4 percent, due primarily to non-cash impairments. This compares to an operating loss of $40 million and an operating margin of -3 percent in the prior year. Adjusted operating income was $78 million, with an operating margin of 6.4 percent, compared to $121 million and 9.1 percent a year earlier.
Net loss for the quarter was $472 million, or $4.03 per diluted share, compared to a net loss of $34 million, or $0.28 per diluted share, in the prior year, significantly impacted due to non-monetary impairments. Adjusted net income was $50 million, or $0.42 per diluted share, compared to $121 million, or $0.97 per diluted share, a year earlier. Net inventory as of March 30, 2024 was $862 million, a decrease of 18.4 percent compared to the last year.
Versace's revenue for Q4FY24 was $264 million, down 3.6 percent on a reported basis and 2.9 percent in constant currency, primarily due to weakening global demand for luxury fashion items. Retail sales increased by mid-single digits, while wholesale revenue decreased by double digits. Revenue in the Americas decreased by 1 percent, in EMEA by 11 percent, while revenue in Asia increased by 6 percent. Versace's global consumer database grew by 1.9 million new consumers, representing a 30 percent growth over the past year. Versace's operating income was $1 million, with an operating margin of 0.4 percent, compared to $14 million and 5.1 percent a year earlier.
Jimmy Choo reported revenue of $137 million, a decline of 9.3 percent in both reported and constant currency terms. Retail sales declined by single digits, while wholesale revenue declined by double digits. Revenue in the Americas decreased by 9 percent, in EMEA by 6 percent and in Asia by 14 percent. Jimmy Choo's global consumer database increased by 0.7 million new consumers, reflecting 12 percent growth over the past year. Jimmy Choo's operating loss was $8 million, with an operating margin of 5.8 percent, compared to a loss of $7 million and an operating margin of 4.6 percent in the prior year, mainly due to lower full price sales and deleveraging of expenses due to lower revenues.
Michael Kors reported revenue of $822 million, down 9.7 percent on a reported basis and 9.2 percent at constant exchange rates. Retail sales declined by single digits, while wholesale revenue declined by double digits. Revenue in the Americas decreased by 9 percent, in EMEA by 7 percent and in Asia by 16 percent. Michael Kors' global consumer database increased by 9.0 million new consumers, representing 13 percent growth over the past year. Michael Kors' operating income was $116 million, with an operating margin of 14.1 percent, compared to $147 million and 16.2 percent a year earlier.
“Overall, we were disappointed with our results, as performance in the fourth quarter continued to be affected by lower global demand for luxury fashion items. In our retail channel, sales trends improved sequentially in the Americas and EMEA, while as trends slowed in Asia. wholesale channel, sales remained in question,” he said. John D Idol, President and CEO of Capri Holdings.
Fiber2Fashion News Desk (DP)
