“We are pleased with our first quarter performance with revenue, gross margin, operating margin, and earnings per share all exceeding our expectations,” said John D. Idol, Capri’s chairman and chief executive officer, in a statement issued by the company. “Looking forward, we remain optimistic about the long-term growth potential for Versace, Jimmy Choo, and Michael Kors. With our portfolio of iconic, founder-led fashion luxury brands, Capri Holdings is positioned to deliver multiple years of revenue and earnings growth.”
Multinational fashion luxury group Capri Holdings Limited’s total revenue of $1.36 billion increased by 8.5 per cent on a reported basis and 15.2 per cent in constant currency, according to the company’s first quarter of fiscal 2023 results. Capri also declared an adjusted operating margin of 18.5 per cent and earnings per share of $1.50.
The company’s gross profit was $901 million and gross margin was 66.3 per cent, compared to $856 million and 68.3 per cent in the prior year. Adjusted gross profit was $900 million and adjusted gross margin was 66.2 per cent, compared to $853 million and 68.1 per cent in the prior year.
Income from operations was $231 million and operating margin was 17.0 per cent, compared to $258 million and 20.6 per cent in the prior year. Adjusted income from operations was $251 million and operating margin was 18.5 per cent, compared to $261 million and 20.8 per cent in the prior year, Capri’s report added.
Net income was $201 million, or $1.40 per diluted share, compared to $219 million, or $1.41 per diluted share, in the prior year. Adjusted net income was $215 million, or $1.50 per diluted share, compared to $221 million or, $1.42 per diluted share, in the prior year.
Net inventory on July 2, 2022 was $1.265 billion, a 66 per cent increase compared to the prior year. Relative to pre-COVID levels, first quarter inventory increased 25 per cent. Higher inventory was planned reflecting Capri’s new programmes to receive seasonal merchandise earlier as well as hold more core inventory.
Capri Holdings now expects a total revenue of approximately $5.85 billion, gross margin approximately flat to fiscal 2022, operating margin of approximately 18 per cent, net interest income of around $10 million, and effective tax rate of approximately 10 per cent.
Fibre2Fashion News Desk (NB)