When Michael Kors' company decided to buy luxury brands Jimmy Choo in 2017 and Versace in 2018, the goal was to create a luxury powerhouse that could grow the company's weak sales and create real value for shareholders.
In some ways, that's working out, as the two acquired brands have seen higher sales, giving an overall positive spin to the company's total revenue. However, the main Kors brand is still suffering, and although the company remains optimistic about its prospects, there's no light at the end of the tunnel just yet.
Overall, Capri Holdings (NYSE: CPRI), the new name for the multibrand luxury retailer, had a good quarter that should make shareholders happy. In the third quarter of fiscal 2020, revenue grew 9.2% to $1.57 billion, and adjusted gross profit was $934 million as compared to $874 million last year. Net income was $200 million, a 5% increase year over year, although adjusted net income decreased 4% to $254 million.