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Capri Holdings misses Q2 estimates, shares fall 7% on weak demand

Published 11/08/2024, 06:12 AM
CPRI
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NEW YORK - Capri Holdings Limited (NYSE:CPRI) reported second quarter earnings that fell short of analyst expectations, as the luxury fashion group faced softening global demand for high-end goods.

The company's shares tumbled 7% following the announcement.

For the second quarter, Capri Holdings posted adjusted earnings per share of $0.65, missing the analyst consensus of $0.73. Revenue came in at $1.08 billion, below the expected $1.18 billion and down 16.4% YoY on both a reported and constant currency basis.

The company, which owns brands Versace, Jimmy Choo, and Michael Kors, saw total retail sales decline in the high-single-digits, while wholesale revenue decreased by double-digits. Capri Holdings attributed the weak performance to softening demand globally for fashion luxury goods.

"Overall, we were disappointed with our second quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods," said John D. Idol, Chairman and CEO of Capri Holdings.

Despite the challenging environment, Capri Holdings reported adding 10.9 million new consumers across its brand databases, representing 13% growth compared to last year.

The company's largest brand, Michael Kors, saw revenue fall 16% to $738 million. Versace revenue declined 28.2% to $201 million, while Jimmy Choo was the only brand to post growth, with revenue increasing 6.1% to $140 million.

Capri Holdings did not provide specific financial guidance for upcoming periods. The company also noted that its previously announced acquisition by Tapestry (NYSE:TPR) has been temporarily halted by a court injunction, with both companies filing an appeal against the decision.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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