Capri’s nine months: the owner of Michael Kors shrinks its profit by 37% but grows by 12%
The company warns the coronavirus outbreak impacted its growth. In the third quarter, Michael Kors has reduced its sales by 5.1%.
The US group Capri ends the first nine months of the year with a growth of 11.94%, but its net result shrinks by 37.4%. In the period, which ended on December 28, the company that owns Michael Kors has recorded sales of 4.3 billion dollars, while its profit stood at 328 million dollars.
In the third quarter, the company experienced a positive evolution. In the last three months, the company reached sales of 1.5 billion dollars, with an increase of 9.2% over the same period of the previous year. The net income stood 210 million dollars, compared to 200 million dollars of the previous year.
Versace sales in the third quarter amounted to 195 million dollars, but the company has recorded operating losses of 12 million dollars.
Capri, owner of Versace and Jimmy Choo, has ended the period with sales of 4.3 billion dollars
Jimmy Choo, meanwhile, has recorded sales of 165 million dollars, with an increase of 1.9% over the third quarter of the previous year. The brand has obtained an operating result of almost ten million dollars.
Michael Kors, the group’s biggest brand, has experienced a 5.1% drop in its revenue in the third quarter, to 1.2 million dollars. The brand has obtained an operating profit of 288 million dollars.
“The increase in sales has reflected the addition of Versace and the growth of Jimmy Choo, while the turnover of Michael Kors has been better than expected,” said John D. Idol, CEO of the company. “The initiatives of our recent acquisitions, Versace and Jimmy Choo, continue to gain traction, and we believe that we are on the right path to position Michael Kors for the future,” he added.
Capri has warned about the impact of the coronavirus outbreak on its business in 2020, as it has meant the closure of 150 out of 255 stores of its Chinese stores. The company expects its sales to stand at 5.6 billion dollars in the year.
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