The US fashion group Capri Holdings Limited exceeded market expectations in the second quarter of the 2022/23 financial year. The parent company of the brands Michael Kors, Versace and Jimmy Choo announced a significant increase in sales and a surprisingly high result on Wednesday.
For the quarter ended October 1, Group sales were $1.41 billion. It thus exceeded the level of the same period of the previous year by 8.6 percent. Adjusted for exchange rate changes, revenues increased by 17.5 percent.
All three Group brands contributed to the growth. Sales at Michael Kors grew 9.2 percent (+14.6 percent at constant currency) to $962 million, while Versace posted an increase of 9.2 percent (+27.7 percent at constant currency) to $308 million . Jimmy Choo’s revenue increased 3.6 percent (+15.3 percent at constant currency) to $142 million.
Despite a slightly lower gross margin, the group was also able to significantly improve its earnings. Operating income was $252 million, up 29.2 percent from the same quarter last year, and net income attributable to shareholders increased 12.0 percent to $224 million. Adjusted for special effects, it increased by 4.3 percent to 245 million US dollars.
Despite the positive figures so far, the company lowered its sales forecast for the current financial year. In view of the “increasingly uncertain macroeconomic environment”, the group has opted for a “more cautious” assessment, said CEO John Idol in a statement. Management now only expects annual sales of around $5.7 billion, down from a target of $5.85 billion. However, the profit forecast remained unchanged.