The decline was driven by high single-digit drops in sales for Versace, Jimmy Choo, and Michael Kors. Softening consumer demand, particularly in the Americas, contributed to a high-single-digit decline in total retail sales, while wholesale revenue dropped in the low-double-digits.
Breaking down brand performances, Versace saw a 9.1% revenue decrease to $280 million, Jimmy Choo experienced a 7% dip to $132 million, and Michael Kors faced an 8.6% revenue decline to $879 million. Michael Kors’ challenges were compounded by delays in implementing its Americas e-commerce site.
Capri’s net income for the quarter ending September 30 fell to $90 million from $224 million in the previous year. John D. Idol, Chairman and CEO, attributed the below-expectation results to macro-economic headwinds and challenges in implementing a new e-commerce platform for Michael Kors in the Americas. Despite these hurdles, Idol emphasized the focus on executing strategic initiatives for long-term sustainable growth across Versace, Jimmy Choo, and Michael Kors. Notably, the three luxury houses added 11.4 million new consumers to their databases, reflecting a 15% growth over the past year and highlighting the enduring value and strong brand equity of the iconic houses.
This update precedes Capri’s upcoming merger with Tapestry Inc, its rival U.S. fashion conglomerate, which also reported its financial performance for the July-September quarter, revealing flat net sales at $1.51 billion.