Capri Holdings recorded revenue for $ 797 million in the first quarter of the year 26, falling by 6 %, excluding Versace, which is less than a sale of $ 1.375 billion in Prada. Net income has risen to $ 56 million. Michael Kors and Jimmy Choo saw a drop in revenue. The entries of the tax year are expected to $ 3,37- $ 3.45 billion. The company aims to stabilize in the fiscal year and the return to growth in the fiscal year, focusing on Michael Kors and Jimmy Choo.
The company recorded a gross profit of $ 502 million, with a gross margin of 63 %, almost flat compared to 63.1 percent in the previous year. Operating income risen to $ 16 million from $ 11 million last year, improving the operating margin at 2 %.
On a rectified basis, the group’s operational income was $ 20 million, with a rectified margin of 2.5 percent, falling compared to 3.7 percent in the period of the previous year.
The company has recorded a net income of $ 56 million or $ 0.47 for diluted action, compared to $ 5 million or $ 0.03 for action diluted in the Q1 exercise. The rectified net profit was $ 60 million or $ 0.50 per share, a significant increase from $ 18 million or $ 0.16 per action last year.
The inventory levels increased by 10.8 percent on an annual basis at $ 779 million, driven from $ 50 million in expected revenue and a further impact of $ 25 million from foreign currency exchanges and rates.
The company generated $ 20 million in cash flow from the operations, spent $ 13 million in capital expenses and concluded the quarter with $ 129 million in cash and $ 1.7 billion in total loans, with a net debt of $ 1.5 billion, accumulated compared to the previous year.
As for the segment, Michael Kors’s revenues decreased by 5.9 percent to $ 635 million, equal to 7.3 percent in constant currency. Provided a gross profit of $ 388 million with a margin of 61.1 percent and an operational income of $ 63 million, with the consequent operating margin of 9.9 percent.
Jimmy Choo’s revenues were $ 162 million, falling by 6.4 percent on a reported base and 9.2 percent in constant currency. He recorded a gross profit of $ 114 million, improving his gross margin at 70.4 percent from 67.1 percent last year. The brand’s operational income was flat at $ 4 million, with a slightly improved margin by 2.5 percent.
“We are encouraged by our results of the first quarter. The trends have improved in sequence leading to revenue and useful for action that have passed our expectations. This performance demonstrates the progress we are doing while we perform our strategic initiatives to energize our fashionable luxury homes. While we are starting to see the signs that our strategies are working,” he said, “he said,” he said, ” John D Idol, president and CEO (CEO) at Capri Holdings.
Looking to the future, Capri Holdings includes entries between $ 3.37 billion and $ 3.45 billion in exercise 26, with an operational income of about $ 100 million and an income from net interests ranging from $ 85 to $ 95 million.
The actual tax rate is expected to be halfway through teenagers and the profits diluted per share (EPS) are foreseen between $ 1.2 and $ 1.4. Michael Kors is expected to generate $ 2,80 to $ 2.875 billion with a high -digit high -digit operating margin, while Jimmy Choo should earn from $ 565 to $ 575 million entrances but will work at a negative margin with a single media figures.
For the second quarter (Q2) of the 26 year, Capri Holdings anticipates the revenue between $ 815 million and $ 835 million, with a slightly positive operational margin. Net interest is expected to be around $ 15 million and the tax rate of about 40 %.
The EPS for Q2 is expected between $ 0.10 and $ 0.15. Michael Kors should contribute with $ 685 to $ 700 million revenue with a high -digit high -digit margin and it is expected that Jimmy Choo genres $ 130 at $ 135 million revenue, maintaining a negative margin with a single average figure.
The prospects incorporate rates taken from 15 to 30 % on imports from key supply countries, including China, India, Vietnam, Cambogia, Bangladesh, Indonesia and the European Union (EU), added the press release.
“Looking forward, with the Versace transaction should close in the second half of the civil year 2025, we focus on the execution of strategic initiatives through our two iconic brands, Michael Kors and Jimmy Choo,” added Idol. “We remain on the right way to stabilize our business this year, at the same time stable a solid base for a return to growth in the year 2027.”
Fiber2fashion news desk (sg)