Michael Kors owner releases earnings

Formerly known as Michael Kors Holdings, the luxury fashion group announced its revenue rose 39% to $5.7bn (£4.5bn) in the period, per compared to the previous year.

Gross profit for the year as of April 2, 2022 increased by 44% to $3.7 billion (£3 billion), compared to 2021.

Meanwhile, Capri Holdings reported a 24.6% increase in revenue to $1.492bn (£1.19bn) in the three months to April 2, 2022.

Gross profit was $956m (£761m), up 29.7% on the same period a year earlier.

Michael Kors generated the highest turnover of Capri Holdings’ three subsidiaries – $1bn (£810m), up 21.8% from the same period a year earlier.

However, Versace recorded the biggest year-on-year increase in revenue – it rose 34% to $315m (£251m).

Jimmy Choo’s earnings rose 25.8% to $156m (£124.23m). It was also the only brand to report an operating loss, at $15m (£11.94m).

Capri Holdings chairman and chief executive John D. Idol said fiscal 2022 saw the luxury group achieve “the highest revenue, gross margin and earnings per share in company history.” company”.

“In addition, we generated strong free cash flow and returned $650m (£518.7m) to shareholders in fiscal year 2022. Our ability to deliver record results while meeting challenging unprecedented global pandemic is testament to the strength of our brands and the success of our strategic growth initiatives. Most importantly, we could not have achieved these results without the hard work, dedication and resilience of our teams around the world.”

He added: “Longer term, we are confident in our ability to resume double-digit revenue increases as we move beyond the impact of the current macro headwinds. The strength of Versace, Jimmy Choo and Michael Kors as well as the proven resilience of the luxury market reinforces our optimism for the future and our ability to reach $7 billion (£5.6 billion) in sales and an operating margin of 20% over time.”

Fiscal 2023 is expected to deliver “another year of record revenue and earnings per share” across the group, Idol said.

The company said it expects the group’s total revenue to rise by 5% to $5.95bn (£4.75bn) next year.

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