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.” 

By Alexa Johnson

Alexa johnson works as an author who writes all the articles being published on the site for the Mobile section of Technology.

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