Global luxury fashion group Capri has reported a total revenue of $1.29bn in the second quarter (Q2) of fiscal year (FY) 2024.
This is a decrease of 8.6% compared to the same period in FY23.
The company attributed the decline to the reducing consumer demand, primarily in the Americas and the implementation issue with the Michael Kors Americas e-commerce.
Capri reported a net income of $90m during the quarter ending 30 September 2023, down from $224m in the same period a year ago.
Its diluted earnings per share were $0.77 compared to $1.63 in the prior year's period.
The company, which owns brands such as Versace, Jimmy Choo and Michael Kors, reported income from operations of $100m in Q2 FY24 and an operating margin of 7.7%.
The retailer’s gross profit also decreased to $832m in Q2 FY24 from $951m in Q2 FY23. Its gross margin was 64.4% over the quarter.
In the quarter, revenues of Versace, Jimmy Choo and Michael Kors declined 9.1%, 7.0% and 8.6%, respectively.
Capri chairman and chief executive officer John Idol said: "Capri Holdings' second quarter results were below our expectations due to macro-economic headwinds, as well as e-commerce implementation-related challenges. In early July, we implemented a new e-commerce platform for Michael Kors in the Americas.
“While we are excited about the long-term benefits, the transition negatively impacted our second quarter results. Additionally, during the quarter consumer demand for fashion luxury goods softened primarily in the Americas.”
In August 2023, accessories and lifestyle brand Tapestry entered into a definitive agreement to acquire Capri in a deal valued at approximately $8.5bn.
In view of this proposed merger, Capri said it does not intend to provide financial guidance for the fiscal.
John Idol added: “We look forward to the successful completion of the merger transaction with Tapestry in calendar year 2024. We are confident that this combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company.”
