Capri, Michael Kors Parent, Up After Earnings Beat Estimates

Shares of Capri, the parent of Michael Kors, were higher after the luxury-goods retailer posted better-than-expected revenue and earnings.
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Shares of Capri Holdings  (CPRI) - Get Report, the owner of Michael Kors, Versace and Jimmy Choo, were higher Thursday after the luxury-goods company posted fiscal-second-quarter earnings that beat analyst expectations.

At last check the stock was up 7.3% to $24.97.

The London fashion group posted earnings of $122 million, or 81 cents a share, up 67% from $73 million, or 47 cents, in the year-earlier period.

For the quarter ended Sept, 26 adjusted earnings were down 22.4% to 90 cents a share compared to $1.16 in the year-earlier period.

Total revenue decreased 23% to $1.11 billion from $1.44 billion. 

A survey of analysts by FactSet produced consensus estimates of GAAP earnings of 3 cents a share, or an adjusted 4 cents, on revenue of $925.8 million.

Inventory for the group declined 13% to $930 million.

Revenue and earnings "[surpassed] our expectations," Chairman and Chief Executive John D. Idol said in a statement.

Revenue from Michael Kors and Versace declined 27% to $793 million and 15% to $195 million, respectively. 

Sales at Jimmy Choo slipped 2.4% to $122 million.

Capri is "attracting new consumers to each of our luxury houses as evidenced by the double-digit increase in our consumer databases," Idol said. 

The luxury retailer did not provide full-year guidance for fiscal 2021 due to the lack of visibility from the pandemic, macroeconomic fundamentals, and tourism flows.

"As the world continues to emerge from this crisis, we are increasingly optimistic about the outlook for the fashion luxury industry and Capri Holdings," the executive said. 

Capri is "positioned to drive multiple years of strong growth as we continue to execute on our strategic initiatives."