Versace Parent Company Earns $219 Million As Luxury Sector Rebounds

Capri Holdings Limited starts to show signs of a return.

The fashion company, which is parent to the Versace, Michael Kors, and Jimmy Choo brands, announced its quarterly earnings Friday morning. Shares of Capri Holding jumped more than 4 per cent in pre-market hours.

“We were pleased with our first-quarter performance, which reflected Capri Holdings’ three global fashion luxe houses,” John D. Idol (Capri’s chairman, chief executive officer) said in a statement. He also stated that the company is increasing its fiscal 2022 revenue outlook and earnings outlook. 

Versace Parent Company Earns $219 Million As Luxury Sector Rebounds

The three-month period ended June 26th saw an increase of 178 percent in total revenues to $1.25 Billion, compared with $451 Million a year ago during the pandemic.

According to the brand, Michael Kors was the largest firm with $871 million in revenue. Versace’s revenues were $240 million compared to $93 million last year. Jimmy Choo’s sales reached $142 million, an increase of $51 million from the first quarter of 2020.

This year, the company made $219 million in profit compared to $180 million losses last year.

These results were noticeably different from the $182 million loss last quarter. At an investor day in June, Idol argued that the company could grow to $7Billion in revenues through paying down debt, opening new stores, expanding the accessories business, and attracting younger shoppers.

Capri partially explains this by raising its outlook. It now expects second-quarter revenues of about $1.25billion, or $5.3billion for the year. Full-year diluted earnings per share are also expected to be $4.50.

There are 1,261 brick-and-mortar stores in the retailer, which includes 820 Michael Kors, 233 Jimmy Choo, and 208 Versace shops. The company finished the quarter with $1.2B in long-term debt, $356M in cash and cash equivalents, and $1.2B in cash.

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The shares of Capri rose more than 227 percent year-over-year, closing at $50.05 each.

Idol stated that “looking forward, we are confident about the growth opportunities for Versace and Jimmy Choo as the world continues its recovery from the effects of the global pandemic.”