Capri Holdings Limited ( NYSE: CPRI ) is on watch after the fashion apparel giant topped FQ2 earnings , but set revenue and EPS guidance below expectations.
Total revenue of $1.41B increased 8.6% compared to last year. On a constant currency basis, total revenue was up 17.5%.
Versace revenue was up 9.2% to $308M compared to a year ago and was 27.7% higher on a constant currency basis. Versace operating income was $62M and the operating margin was 20.1%,
Jimmy Choo revenue rose 3.6% to $142M compared to the prior year. On a constant currency basis, total revenue increased 15.3%. Jimmy Choo operating income was $8M and operating margin was 5.6%
Michael Kors revenue jumped 9.2% to $962M increased 9.2% compared to last year and was up 14.6% on a constant currency basis. Michael Kors operating income was $248M and operating margin was 25.8%.
CPRI's overall adjusted gross profit was $948M and adjusted gross margin was 67.1%.
The company's net inventory as of October 1 was up 36% Y/Y to $1.180B. Relative to pre-COVID levels, FQ2 inventory increased 10%. This represents a sequential improvement and management continues to expect inventory levels to moderate through the year.
Capri ( CPRI ) also announced that its board approved a new share repurchase program of up to $1B worth of its outstanding ordinary shares. The new two-year program will replace CPRI's existing $1B share repurchase program which had $250M of availability remaining
Looking ahead, Capri Holdings ( CPRI ) expects total revenue of approximately $5.7B vs. $5.8B consensus and EPS of $6.85 vs. $6.78 consensus.
Shares of Capri ( CPRI ) moved 2.22% higher in premarket action on Wednesday following the earnings update.
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Capri Holdings tops earnings expectations off strong quarter for Versace, Michael Kors