US’ Capri Holdings Limited, the parent company of luxury fashion brands Versace, Jimmy Choo, and Michael Kors, reported a revenue of $1.51 billion in the third quarter (Q3) of fiscal 2023 (FY23), down 6 per cent from the same period last year. Gross profit for the quarter was $1.01 billion, with a gross margin of 66.5 per cent, compared to $1.05 billion and 65.1 per cent in the prior year.

The company’s adjusted gross profit was $1 billion, with a margin of 66.3 per cent, compared to $1.05 billion and 65.1 per cent in the previous year, Capri Holdings said in a press release.

Capri Holdings Limited, the parent company of luxury fashion brands Versace, Jimmy Choo, and Michael Kors, reported a revenue of $1.51 billion in Q3 FY23, down 6 per cent from the same period last year. Gross profit for the quarter was $1.01 billion, with a gross margin of 66.5 per cent, compared to $1.05 billion and 65.1 per cent in the prior year.

Income from operations was $236 million, with an operating margin of 15.6 per cent, compared to $331 million and 20.6 per cent in the prior year. The company’s adjusted income from operations was $256 million, with an operating margin of 16.9 per cent, compared to $359 million and 22.3 per cent in the previous year.

Net income in Q3 FY23 was $225 million, or $1.72 per diluted share, compared to $322 million, or $2.11 per diluted share, in the prior year. The company’s adjusted net income was $240 million, or $1.84 per diluted share, compared to $339 million, or $2.22 per diluted share, in the previous year.

In Q3 FY23, the company’s flagship brand, Michael Kors, saw a revenue decrease of 7.2 per cent to $1.095 billion, compared to the prior year. The brand’s operating income was $251 million, with an operating margin of 22.9 per cent. Meanwhile, Versace reported a revenue decrease of 0.8 per cent to $249 million, with an operating income of $24 million and operating margin of 9.6 per cent. Jimmy Choo also reported a revenue decrease of 5.6 per cent to $168 million, with an operating income of $18 million and operating margin of 10.7 per cent.

Capri Holdings provided its outlook for the rest of the fiscal 2023. The company expects total revenue for the year to be approximately $5.56 billion, with a modest gross margin expansion, operating margin of approximately 16 per cent, and diluted earnings per share of approximately $6.10.

For the fourth quarter of fiscal 2023, the company expects total revenue of approximately $1.275 billion, operating margin of approximately 8.5 per cent, and diluted earnings per share of $0.90-$0.95.

For fiscal 2024, Capri Holdings expects total revenue of approximately $5.8 billion, operating margin of approximately 16.5 per cent, and diluted earnings per share of approximately $6.40.

Fibre2Fashion News Desk (DP)