The coronavirus pandemic upended the retail sector in unexpected ways, given the government-mandated business shutdowns. Capri Holdings (NYSE: CPRI) , which owns a trio of luxury brands, has managed to get through the massive upheaval in one piece, with sales now above where they were prior to the pandemic. Only investors shouldn't get too excited about that fact, since a deeper dive shows there's still a lot of work to be done here.
Capri Holdings posted revenue of $1.6 billion in its 2022 fiscal third quarter (ended Dec. 31, 2021), which is basically the retailer's single most important period of the year given that it encompasses the holiday selling season. That performance was up from $1.3 billion in the same quarter of fiscal 2021, a very healthy sales increase but also was really just the recovery from the pandemic. What's more notable is that the fiscal third quarter of 2020, prior to the pandemic, saw revenue of about $1.6 billion. In other words, Capri Holdings' top line has now fully recovered from the coronavirus hit.
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This Luxury Retailer's Sales Are Back, but Now It Has Other Problems to Solve