Capri Holdings reports a 24% jump in sales in the final quarter of 2021, raising its full-year outlook.
Capri Holdings, owner of Michael Kors, Versace and Jimmy Choo, has exceeded its sales expectations for 2021 and says it will continue to raise prices on its brands to capitalize on soaring demand for luxury.
The company’s shares jumped 10 percent, extending a string of strong performances by luxury goods companies in recent weeks. In its fiscal third quarter, Capri Holdings’ net income was $2.22 per share, compared to a consensus of $1.69. The company’s total sales reached $1.61 billion in the third quarter, ended Dec. 25, up 24 percent, exceeding pre-pandemic levels when analysts were expecting $1.47 billion. Versace’s sales reached $251 million, Jimmy Choo’s $178 million and Michael Kors’ $1.18 billion.
Like its luxury rivals, Capri said its sales were driven by demand in the United States and Europe. However, sales in mainland China fell due to covid-19-related store closures.
President and CEO John Idol said the company is now looking to reposition its brands, including Versace, at higher price points. “We have seen no consumer resistance to the price increases we have made, and there will be more,” and added, “The results are the result of strong momentum in all three luxury houses, reflecting the strength of Versace, Jimmy Choo and Michael Kors, as well as the continued execution of our strategic initiatives. We are particularly proud of our performance given the headwinds caused by the pandemic, including regional restrictions and supply chain challenges. Capri Holdings’ results are a testament to the dedication and agility of our teams around the world.”
The company expects fiscal 2022 revenue of $5.56 billion, up from a previous estimate of $5.4 billion, while it expects annual earnings per share of $6, up from $5.30.
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Featured photo : © Michael Kors
