- Robyn Turk |
For the fourth quarter ending on March 30, 2019, Capri Holdings Limited announced a growth of 13.9 percent, with a total revenue of 1.344 billion dollars. The global fashion luxury group, experienced a full year revenue growth of 11 percent, while on a constant currency basis, total revenue increased by 16.5 percent. Gross profit was 793 million dollars and gross margin was 59 percent , compared to 710 million dollars and 60.2 percent the year before.
Capri Holdings' chairman and CEO John D. Idol commented, “Fiscal 2019 was a transformational year for Capri Holdings. We expanded our fashion luxury group with the addition of Versace, one of the world’s most storied Italian luxury brands. Jimmy Choo delivered strong results and we continued to execute against Michael Kors’ three strategic growth pillars of product innovation, brand engagement and customer experience. For the year, we were pleased that our luxury group delivered both double digit revenue and adjusted earnings per share growth.”
Q4 performance across the company's core segments
Revenue from Jimmy Choo increased by 28.7 percent compared to last year, now totaling at 139 million dollars. On a constant currency basis, total Jimmy Choo revenue increased by 35.1 percent. The brand's operating loss was 8 million dollars and operating margin was 5.8 percent, compared last year's operating loss of 18 million dollars and margin of 16.7 percent.
Versace brought Capri Holdings a total revenue of 137 million dollars in the fourth quarter. Compared to the prior year, revenue increased high single digits, according to the company's release. Versace operating loss was 11 million dollars and operating margin was 8 percent.
Michael Kors fourth quarter revenue of 1.068 billion dollars decreased 0.4 percent from last year, while on a constant currency basis, total revenue increased by 1.8 percent.
Capri Holdings announces 2020 expectations
Capri Holdings expects a total revenue of 6 billions dollars for the 2020 fiscal year, with an operating margin of approximately 15.5 percent.
The company plans to rapidly expands Versace's luxury business through strategic investments that will enhance brand engagement, omnichannel retail offerings and expanding international retail. Capri Holdings expects revenue of approximately 900 million dollars with this strategy, with an operating margin of positive low single digits.
Capri Holdings will continue to innovate and grow women's footwear with Jimmy Choo, as well as expand the brand's accessories business. it expects revenue of approximately 650 million dollars from Jimmy Choo in the 2020 fiscal year.
As far as its Michael Kors brand, the company will maintain a focus on product innovation and increase brand engagement through a social media presence. Capri Holdings also announced that it will expand the Michael Kors VIP program and store remodeling in order to enhance customer experience. It expects revenue of approximately 4.45 billion dollars.
Photo: Versace via Business Wire