The US fashion group Capri Holdings Limited also had to record a decline in sales in the third quarter of the 2023/24 financial year.
The reason for this is the continued decline in demand for luxury fashion, explained Capri CEO John Idol on Thursday when announcing the business figures for the three months before December 30th. “However, sales trends improved in the third quarter compared to the previous quarter, driven by better results in our own retail channel, while sales in our wholesale channel continue to be challenging,” he said.
The company’s total sales, which include the Versace, Jimmy Choo and Michael Kors brands, fell by 5.6 percent year-on-year to 1.43 billion US dollars (1.33 billion euros), while sales adjusted for exchange rate movements fell by 6. 6 percent. Operating profit was $122 million (€113 million) compared to $236 million in the third quarter of 2022/23.
Decline in sales for all brands
The individual brands also suffered a decline in sales. Sales at the Italian fashion house Versace fell by 8.8 percent (-10.8 percent at constant currency) to 227 million US dollars, while at shoe specialist Jimmy Choo sales fell by 1.2 percent (-3 percent at constant currencies) to 166 million US dollars and the main brand Michael Kors had to record a decline in sales of 1.03 billion US dollars of 5.6 percent (adjusted for currency effects -6.2 percent) compared to the same period last year.
In light of the pending Capri takeover by Tapestry Inc., the parent company of the Coach, Kate Spade and Stuart Weitzman brands, the fashion group did not provide financial guidance for the final three months of the current fiscal year.
“This combination will provide added value to our shareholders and create new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company,” Idol said of the acquisition. “By joining forces with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”