Capri Holdings Reverses Sales Decline and Boosts Profits
American conglomerate Capri Holdings is gradually reversing its business decline, ending the first half of the year with $1.653 billion in revenue. This represents a 4% drop compared to the prior year, improving from a 6% decline in the first quarter.
Recovery and Strategic Focus
Capri Holdings, owner of luxury brands Michael Kors and Jimmy Choo, is consolidating its recovery by slowing the sales decline while maintaining profitability achieved earlier this year.
Following the sale of Versace to Prada at the start of the year, the company is now concentrating on expanding Michael Kors and Jimmy Choo to drive future growth.
CEO Statement on Financial Strategy
“We intend to use the proceeds from the sale (of Versace) to pay down most of our debt, which will strengthen our financial position and give us greater flexibility to both invest and grow,” explained John D. Idol, chairman and CEO of Capri Holdings.
Financial Highlights
- The company closed the six-month period ending September 27 with $1.653 billion in turnover, down 4.06% year-over-year.
- Sales decline improved from 6% in the first quarter to just over 4% in the first half.
- Gross profit reached $1.02 billion during this time.
Capri Holdings’ strategic focus on debt reduction and brand growth marks a positive step toward stabilizing and strengthening the company’s future prospects.
Author’s summary: Capri Holdings is improving financial performance by slowing sales declines and leveraging the Versace sale to reduce debt and fund growth in its remaining luxury brands.