John Idol, chairman and chief executive officer of Carpi Holding, said the strength of the company’s brands — Michael Kors, Jimmy Choo and Versace — was overcoming COVID-19 and supply chain turmoil.
And Idol had the numbers to back that up for the fiscal second quarter.
The company’s profits rose 64 percent to $200 million, or $1.30 a diluted share, from $122 million, or 81 cents, a year earlier. Adjusted earnings per share came in at $1.53, easily beating the 95 cents Wall Street analysts forecast.
Revenues for the three months ended Sept. 25 increased 17.1 percent to $1.3 billion compared with $1.1 billion.
Capri upped its outlook for the year and is looking for a much bigger boost to profits, which are now tagged to be $5.30 a diluted share compared with the $4.50 previously projected. Revenues were also adjusted upward and are now forecast for $5.4 billion instead of the $5.3 billion previously seen.
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Investors were impressed and sent shares of the company up 6.8 percent to $59.30 in premarket trading.
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“This performance reflects the power of Versace, Jimmy Choo and Michael Kors as well as the execution of our strategic initiatives,” Idol said.
“We remain confident in the strength of our luxury houses and are pleased to be raising revenue and earnings guidance for the year,” the CEO said. “Our new outlook reflects both stronger revenue performance as well as greater than anticipated gross margin expansion driven by the execution of our strategic initiatives. The success of these initiatives is currently offsetting the COVID-19 related industry headwinds, including supply chain delays and increased transportation costs. Looking forward as the world continues to recover from the impact of the global pandemic, we remain confident in the growth opportunities for Versace, Jimmy Choo and Michael Kors. As we execute on our strategic initiatives, Capri Holdings is positioned to deliver multiple years of revenue and earnings growth.”
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