Capri misses adjusted profit expectations, but sales fall less than forecast

/ / News

Shares of Michael Kors parent Capri Holdings Ltd. slipped 0.5% in premarket trading Wednesday, after the luxury fashion group reported a fiscal fourth-quarter adjusted profit that missed expectations, while revenue fell less than forecast. For the quarter to March 28, the company swung to a net loss of $551 million, or $3.69 a share, from net income of $19 million, or 13 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 11 cents, below the FactSet consensus of 13 cents. Revenue fell 11.3% to $1.19 billion, above the FactSet consensus of $1.12 billion. After closing all of its 455 Michael Kors, Versace and Jimmy Choo retail stores in the Americas in March as a result of the COVID-19 pandemic, about 70% are now open, and the “vast majority” of the remaining stores are expected to be opened by the end of the fiscal second quarter. Among Capri’s business segments, Michael Kors revenue fell 18.4% to $872 million to beat expectations of $840.5 million, Versace revenue grew 55.5% to $213 million to top expectations of $165.6 million and Jimmy Choo revenue declined 23.0% to $107 million to miss expectations of $111.9 million. Capri did not provide guidance for fiscal 2021, citing the lack of visibility surrounding the pandemic. Capri’s stock has run up 75.4% over the past three months, while the S&P 500 has gained 25.5%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.