Capri closes the halfway point of the year on the rise. The American luxury group, owner of Michael Kors, Jimmy Choo and Versace, has ended the first six months of the year (period ended on October 1) with increases in both sales and profit, although it has reduced its forecasts for the end of the year .
Capri has registered an increase in sales of 8.6% in the period, up to 2,772 million dollars, while profit stood at 425 million dollars, 12% more. In the second quarter alone, the company’s revenues have grown by 8.6% and profits have increased by just 1.4%. Adjusted earnings per share came in at $1.79, above analyst forecasts for the figure to hit $1.54.
“We are satisfied with our performance in the second quarter,” said John D. Idol, president and CEO of Capri. “The results were driven by the performance of our three brands, as well as the continuous execution of our strategic initiatives”, added the manager. The company also just launched a $1 billion share buyback program.
Capri expects to end fiscal year 2023 with revenues of 5.7 billion dollars
Capri lowered its forecasts for 2023, “due to the macroeconomic environment increasingly uncertain, foreign currency headwinds and the continuing impact of pandemic-related restrictions in China.”
For 2023, the company’s forecasts go through registering sales of 5,700 million euros, compared to previous estimates that the turnover reached 5,850 million dollars. Instead, the company has upgraded its gross margin forecast, which it expects to be flat and now estimates to expand by 50 basis points.
Capri has also upgraded its operating margin forecast to 18.3% from the previous estimate of 18%. Additionally, the US company expects inventory to be below last year’s levels.
By brands, Versace will register sales of 1,150 million dollars in 2023, compared to the original estimates of 1,175 million dollars, while sales of Jimmy Choo will stand at 640 euros, ten million less than forecast. The forecasts for Michel Kors are the ones that have been lowered the most, going from 4,025 million dollars to 3,910 million dollars.
The company’s inventory also increased 36% to October 1stup to 1,118 million euros and explained that “management expects inventory levels to moderate this year”.
In the second quarter, Versace’s sales rose 9.2% to $308 million, while Jimmy Choo’s revenue rose 3.6% from the same period a year ago to $142 million. . In the case of Michael Kors, its largest brand, turnover registered a rise of 9.2%, to 962 million dollars.