XM does not provide services to residents of the United States of America.

Capri posts bigger-than-expected drop in quarterly revenue on tepid demand



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 2-Capri posts bigger-than-expected drop in quarterly revenue on tepid demand</title></head><body>

Adds details in paragraphs 3, 4 and 10; background in paragraph 3-9

By Anuja Bharat Mistry

Nov 7 (Reuters) -Versace-parent Capri Holdings posted a bigger-than-expected drop in quarterly revenue on Thursday, hurt by execution missteps across brands and a global slowdown in luxury goods demand, sending its shares down about 6% in extended trading.

The results were in contrast to those of Coach-parent Tapestry, whose $8.5 billion deal to buy the company was blocked by a U.S. judge last month.

Capri said MichaelKors' quarterly revenue, which contributed 68% to its total sales in2024, declined 16%, compared with an 8.6% drop a year earlier.

The company's quarterly margin was 64.3%, compared with 64.4% a year earlier, as it was forced to offer more discounts and deal with higher expenses.

Last month, peer LVMH's results suggested that the French luxury retailer struggled to lift demand in key markets such as China and Japan.

Consumers have been cutting back on expensive non-essentials to limit their expenses, hurting demand for high-end brands including Capri, LVMH LVMH.PA and Estee Lauder EL.N.

Capri's netrevenue fell 16.4% to $1.08 billion from a year earlier. Analysts were expecting an 8.7% fall to $1.18 billion, according to data compiled by LSEG.

Earlier this month, Telsey Advisory Group analysts noted that Capri has struggled to implement a new e-commerce platform for Michael Kors and missed opportunities to revitalize the brand and boost profitability for Jimmy Choo and Versace brands, potentially weakening its market position.

Tapestry also said on Thursday that it had paused Capri integration plans as both companies have jointly appealed a U.S. judge's decision to block its deal for the Michael Kors owner.

Excluding items, its profit of 65 cents per share, missing estimates of 75 cents per share.



Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Anil D'Silva

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.