Michael Kors’ Parent Company, Capri Holdings, Is in Growth Mode

Capri Holdings Ltd. continues to invest in its brands. But investors remain skeptical about the future. Shares of the parent company to Michael Kors, Versace and Jimmy Choo sank at the start of Wednesday’s trading session after the company released quarterly earnings with mixed results. While overall company sales were up last quarter, bottom line profits fell. By brand, Jimmy Choo continued to lead the growth, with top-line sales shooting up 28.7 percent. The company also made gains with Versace. Revenues in the Versace brand, the first quarter reporting under the Capri umbrella, were $137 million. But the operating loss was $11 million. At Michael Kors, both revenues and income fell. Capri also revised down its full-year revenues for the current fiscal year. The news sent shares plunging by more than 11 percent. John Idol, Capri’s chairman and chief executive officer, said the losses stem from lower revenues in wholesale and a weak North American business. Still, he assured analysts on Wednesday morning’s conference call that the results are consistent with the company’s expectations — among them was to stabilize and reposition the Michael Kors brand for long-term growth — and that more changes are coming. They just might not

Follow WWD on Twitter or become a fan on Facebook.

Read More...

from WWDWWD http://bit.ly/2WiXRFS