Versace (Versace) Has Made An Initial Loss Of $One Hundred Million.

On Wednesday, Capri Holdings Ltd., the US luxury group, released the key financial data for the third quarter of the financial year of the 2019/2020, with strong sales and earnings growth, exceeding analysts' expectations. But by the new crown virus epidemic in China, Capri lowered its annual performance expectations.

Capri's chairman and chief executive, John Idol, said in a press release: "our strategic initiatives to acquire Versace (Versace) and Jimmy Choo continue to work. We also believe that we are on the right path to achieve future growth for Michael Kors. "

Versace's revenue exceeded the group's expectations. The composite growth rate in the Americas and EMEA (Europe, Middle East and Africa) regions was two digits, but the brand suffered a continuous decline in Asia, mainly due to protests in Hongkong, China; Jimmy Choo. Achieving a modest increase is in line with expectations. Although the overall trend in Asia is affected by China's Hongkong, it has achieved two digit growth in mainland China. The largest brand Michael Kors is still facing challenges. Due to the decrease in passenger traffic in the US stores in December, the retail sales of the brand were lower than expected, while the same store sales fell by a single digit year on year.

In the first three quarters of fiscal year 2019/2020, Capri's total revenue was US $4 billion 360 million, up from US $3 billion 890 million in the same period last year, while net profit dropped from US $524 million to US $328 million, and diluted earnings per share declined from 3.46 US dollars to us $2.15.

With the continuation of the new crown virus epidemic in China, Capri announced that the fourth quarter and 2019/2020 fiscal year's annual revenue forecasts were reduced by about 100 million dollars. The total revenue fell to around $5 billion 600 million a year, and the earnings per diluted share were expected to be between $4.45 and $4.50. The fourth quarter revenue dropped to around $1 billion 300 million, and the earnings per diluted share were 0.68 to 0.73 dollars.

John Idol explained: "we are in a global outbreak of new coronavirus. Our thoughts and prayers are with the Chinese people, including our staff in this region, and all the people affected by the virus in the world. We hope to resolve this crisis quickly and actively. China's situation and the protective measures it is taking has had a major impact on our business. At present, about 150 of our 225 stores in mainland China have been temporarily closed. And those shops that are still open, traffic and sales have dropped sharply. John Idol added, "if the severity of the virus is deteriorating further, there may be substantial changes in performance expectations", but he remains optimistic on the whole.

After the announcement, Capri shares rose 2.05% to $31.35 per share as of Thursday's close.

The key financial data of Capri for the third quarter of the 2019/2020 fiscal year ended December 28, 2019 are as follows:

The total sales revenue was $1 billion 570 million, an increase of 9.2% over the same period last year of 1 billion 440 million (by 9.6% on a constant exchange rate basis). According to the FactSet data cited by MarketWatch, analysts expect revenue of $1 billion 540 million.

Gross profit is $932 million, gross margin is 59.3%.

Operating profit was $205 million and operating profit margin was 13%.

Net income was $210 million, diluted earnings per share were $1.38, net income for the same period last year was $200 million, and diluted earnings per share were $1.33.

After adjusting for some items, adjusted earnings per share were $1.66, exceeding analysts' forecasts of $1.59.

By brand

Michael Kors: revenue was $1 billion 210 million, down 5.1% from the same period last year, down 4.7% from the constant exchange rate.

Versace: revenue of $195 million, up 5% on a comparable basis, unchanged at the exchange rate.

Jimmy Choo: revenue of $165 million, an increase of 1.9% over the same period last year, unchanged from the same period last year.