Versace mother Capri: Annual profit shrinks by a quarter

The US fashion group Capri Holdings Limited had to accept a decline in sales and profits in the 2022/23 financial year. In the fourth quarter, the parent company of the brands Michael Kors, Versace and Jimmy Choo even slipped into the red due to negative special effects. This emerges from an annual report that the company published on Wednesday.

For the full fiscal year that ended on April 1, group sales were $5.62 billion (€5.26 million), down 0.6 percent from the prior year. Net income attributable to shareholders fell 25.1 percent to $616 million.

In the fourth quarter, high one-off charges put the numbers in the red

In the final quarter, which included one less week of sales than the same period last year, revenue fell 10.5 percent to $1.34 billion. Adjusted for calendar and currency effects, they fell by 3.0 percent.

All three group brands suffered a decline in sales. At Versace, revenues decreased by 13.0 percent (calendar and currency adjusted -8.6 percent) to 274 million US dollars compared to the same quarter of the previous year, at Jimmy Choo by 3.2 percent (calendar and currency adjusted +5.6 percent ) to $151 million and Michael Kors by 10.9 percent (-2.2 percent after adjusting for calendar and currency effects).

The Group ended the fourth quarter with a net loss attributable to shareholders of $34 million due to one-time charges, primarily resulting from valuation adjustments and restructuring expenses. In the same period of the previous year, a corresponding surplus of 81 million US dollars had been booked. Adjusted for special effects, net income shrank by 20.4 percent to 121 million US dollars.

For the current 2023/24 fiscal year, management forecast slight sales growth to around 5.7 billion US dollars. Diluted earnings per share, adjusted for special effects, which were US$6.13 last year, are expected to increase to about US$6.40.

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