After the market closed on Thursday — and the dust settled from the big unveil of Tapestry Inc.’s $8.5 billion deal to buy Capri Holdings — a little more detail came out on exactly what is being bought.
Capri issued its first-quarter results in a filing with the Securities and Exchange Commission, revealing top and bottom line declines.
Net income fell to $48 million from $201 million a year earlier. Still, adjusted earnings per share of 74 cents came in ahead of the 71 cents analyst had penciled in, according to FactSet.
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Revenues for the three months ended July 1 decreased 9.6 percent to $1.23 billion and were also better than the $1.2 billion analysts expected.
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John Idol, chairman and chief executive officer, skipped any analysis in the filing and instead addressed the takeover: “As announced earlier today, the planned acquisition of Capri Holdings by Tapestry marks a major milestone for our company. It is a testament to all that our teams have achieved in building Versace, Jimmy Choo and Michael Kors into the iconic and powerful luxury fashion houses they are today. … By joining with Tapestry, we will have greater resources and capabilities to accelerate the expansion of our global reach while preserving the unique DNA of our brands.”
Versace’s first-quarter revenues fell 5.8 percent to $259 million while Jimmy Choo increased 6.4 percent to $183 million and Michael Kors fell 13.8 percent to $787 million.
While Michael Kors has been revamping recently, analysts expect Tapestry to take a page from the Coach turnaround playbook to try to push the brand higher.