Shares Of Capri Holdings Limited Sink on Mixed Earnings Results

Capri Holdings Limited is in growth mode, but investors may not think it’s happening fast enough. Shares of the parent company to the Michael Kors, Versace and Jimmy Choo brands sank by more than 10 percent during pre-market trading hours Wednesday after a mixed fourth quarter earnings report. For the three-month period ending March 30, the company’s total revenue was $1.34 billion, up from $1.18 billion a year ago. That’s a 13.9 percent increase. But net income fell to $19 million, down from $44 million in the same period last year. “Fiscal 2019 was a transformational year for Capri Holdings,” John Idol, the company’s chairman and chief executive officer, said in a statement. He added that improvements to the company included several significant investments. Perhaps the largest among them was the acquisition of luxury fashion house Versace. The deal, which closed in January when the company officially changed its name to Capri Holdings, totaled $2.1 billion. While the Versace name still carries a lot of equity, some investors are worried it may take too long to see a return. “Versace has a lot of sales, but it’s not a very profitable business,” said UBS analyst Jay Sole. “Part of the investment,

Follow WWD on Twitter or become a fan on Facebook.

Read More...

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