Capri Holdings’ revenues continued to decline in the fiscal second quarter, but efforts to elevate the Michael Kors brand boosted full-price sales and gross margins, contributing to better-than-expected profits — and the hardy approval of shareholders.
Revenues for the quarter ended Sept. 26 fell 5.5 percent to $809 million, a 4.9 percent decline in constant currencies. The numbers were flattered by roughly $20 million in sales attributed to earlier-than-expected wholesale shipments, including $15 million of Michael Kors sales and $5 million of Jimmy Choo’s take.
Michael Kors’ revenue of $663 million equated to an 8 percent decline in constant currencies. Jimmy’s Choo’s sales of $146 million were up 12.2 percent from a year earlier, in constant currencies.
Gross margins rose to 63.3 percent from 61 percent a year ago, a bump the company attributed to “higher full-price sell-throughs, brand mix and lower tariff rates.”
Adjusted earnings tallied $45 million, or 42 cents a diluted share — well ahead of both the 3 cent loss recorded a year earlier and the 21 cent profit analysts had penciled in, according to Yahoo Finance. Net income of $27 million compared with year-ago losses of $34 ...