Fashion Updates | luxury

Significant revenue growth was reported by Capri Holdings for FY23, which is based in the US.

Published: June 1, 2023
Author: Fashion Value Chain

-By Ankita Dutta

Capri Holdings, a luxury fashion corporation headquartered in the United States, has exhibited a steady advancement in the fiscal year 2023 (FY23), indicating an increase in revenue growth of high single digits amounting to $5.619 billion. Brands, including Versace and Jimmy Choo, maintained significant double-digit growth, enabling the company to achieve record revenue. Michael Kors also contributed to the mid-single-digit revenue growth, marking a significant milestone for the company.

Capri Holdings declared an expansion in the footwear division in every brand. Based on a news release by the corporation, there was a low-double-digit improvement in retail sales of women’s footwear in Versace and Michael Kors, with Jimmy Choo encountering high-single-digit growth.

Chairman and CEO of Capri Holdings, John D Idol, stated that the results achieved in FY23 showed the power of the company’s business model, the strength of the luxury houses, and the execution of strategic initiatives. Despite the decline in revenue in Q4 FY23, gross profit remained stable, showing a gross margin of 64.9 per cent. This marked an improvement in comparison to the previous year.

Comparing the operating margin of $119 million with 8 per cent of the previous year, the company faced a loss of $40 million. The Q4 FY23 registered a total revenue of $1.335 billion, which indicated a decline of 10.5 per cent compared to the previous year, as communicated in a statement. On a 13-week constant currency basis, the total revenue decreased by 3 per cent.

The company’s net loss was calculated at $34 million or $0.28 per diluted share in Q4 FY23, which is a significant downturn compared to net income of $81 million or $0.54 per diluted share in the previous year.

From a brand perspective, Versace’s Q4 FY23 revenue decreased by 13.0 per cent, while operating income was $14 million, showing an operating margin of 5.1 per cent.

According to a recent release, Jimmy Choo’s Q4 FY23 earnings were $151 million, which represents a 3.2 per cent decrease from the previous year. Nevertheless, when analyzing 13-week constant currency rates, overall revenue for the company rose by 5.6 per cent, and the operating margin saw a notable improvement compared to the preceding year.

Michael Kors’ Q4 FY23 revenue decreased by 10.9 per cent compared to the previous year, with operating income being $147 million and having an operating margin of 16.2 per cent.

In conclusion, although the company experienced a decrease in revenue during Q4 FY23, it recorded significant growth in the year, making significant strides in boosting its revenue. The success achieved in FY23 reflects Capri Holdings’ excellent business model and its strong luxury brands.

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