Michael Kors-owner Capri posts quarterly revenue above estimates
Capri has narrowed down its focus on the Michael Kors fashion brand following a failed attempt to merge with rival and Coach -parent Tapestry last year. In April, the company sold its underperforming Versace label to Italian rival Prada in a $1.38 billion deal.
"We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time while restoring operating margin to the double-digit range," Capri CEO John Idol said.
Consumers in North America have scaled back spending on high-end goods amid concerns over looming price hikes on everyday essentials and discretionary items in the coming months due to higher supply chain costs fueled by new tariffs.
The company now expects total annual revenue in the range of $3.3 billion to $3.4 billion, accounting for Versace now as part of discontinued operations.
The forecast excludes changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said.
It posted a 15.4% drop in revenue to $1.04 billion for the quarter ended March 29, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by LSEG.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
2 hours ago
- Fashion Network
Louis Vuitton to open a new workshop in the US, announces Bernard Arnault
Leather goods manufacturer Louis Vuitton, the flagship brand of luxury giant LVMH, is aet to open a new workshop in the US "to meet demand", LVMH CEO Bernard Arnault said on Thursday. "Louis Vuitton already had a workshop in the US when I arrived at LVMH. Given the company's development in the United States, we opened a new one five years ago, and we plan to open another one to meet demand, again in Texas," said Arnault in an interview with Le Figaro. This new workshop will be near Dallas (Texas), where Louis Vuitton already has a workshop, inaugurated in 2019 in the presence of Donald Trump, and should be delivered in late 2026 or early 2027, a source close to the matter told AFP. LVMH, which generates 25% of its sales in the United States, already owns three Louis Vuitton workshops and four workshops for the American brand Tiffany on US territory. Bernard Arnault added: "For our American customers, buying a Louis Vuitton product made in the US is no problem at all." In May, his rival François-Henri Pinault, CEO of the Kering group, which owns Gucci, Yves Saint Laurent and Balenciaga, declared that "it wouldn't make sense to have Italian Gucci bags made in Texas." During the first round of negotiations on US tariffs in April, Bernard Arnault - who had a front-row seat at Donald Trump's inauguration four months earlier - estimated that if "we end up with high tariffs, (...) we'll have to increase our American production." A month later, he and his son Alexandre were received at the White House by Donald Trump, who described them as "very good friends" on the side-lines of the preparations for the 2026 Football World Cup.
Fashion Network
3 hours ago
- Fashion Network
AYT Studio carves a path between contemporary fashion and artistic expression
Like the great painters and sculptors, fashion designers and luxury brands now find themselves featured in retrospectives in museums around the world. While the number of links between fashion and art has multiplied over the past decade, the motivations of those involved in the ready-to-wear sector can be diverse, ranging from the search for artistic legitimacy to the creation of new experiences or successful commercial operations. For Yasmine El Kadiri, who worked for Kenzo, Celine, and Saint Laurent as a merchandising specialist, and who was at the forefront of observing this flourishing of collections centred around artworks and artists, this trend represents an opportunity. "When I observed these initiatives, they were often linked to an artist's work. But I believe there exists a space to create a dialogue with artists, where the artist participates in and influences the creative process. For me, creative engagement is a driving force, even though I have a commercial background. I have this desire for co-creation." The designer first put her concept to the test in the IFM Entrepreneurship program, before developing the first AYT Studio collection from mid-2024, with the intention of creating limited editions around her collaborations with artists. "I wanted to approach these collections under the concept of editions because I didn't want the work to be associated with a particular season, there's a kind of timelessness." For this first edition, the designer has collaborated with Lille-based artist Remed (Guillaume Alby) to translate the painter's works into garments. Together, they explored the possibilities of using details from certain artworks to create prints. The collaboration covers around twenty pieces, focusing on flowing viscose dresses featuring all-over prints. Produced in Italian workshops, the garments echo Remed's graphic and colourful work. Shirts, t-shirts, silk squares, and leather bags, made in the Tarn region of France, make up a comprehensive, colourful wardrobe that has been divided into four chapters. "I work in print, which is a niche in the fashion world, but it's an interesting expression in terms of colour and volume," said the entrepreneur. "I appeal to a community that is sensitive to the artistic approach. I think in terms of silhouettes, with dresses, shirts, but also accessories," said the designer, who is proud of her local sourcing. "And while each edition will explore the work of a particular artist, I can also express the AYT Studio style through contemporary cuts, fluidity and optimism, as well as the presence of certain pieces that are my references, like oversized shirts. I want to add markers that will reassure the customer." The brand can be found online via its aesthetic e-commerce store, but Yasmine El Kadiri relies on physical encounters to best express her concept. This approach was validated after a pop-up in the Marais district of Paris in spring, in which Remed's works mirrored the clothes on display, enabling the label to reach both French and international customers. The designer is continuing in this vein, exhibiting her creations until the end of July at the We Are club in Paris, located on rue Saint-Honoré and dedicated to the creative industries. The brand will then move on to the new We Are location in Lille, at 22, place Louise-de-Bettignies, in the heart of Vieux-Lille. This will be followed by another installation for a few days in the Parisian space, during the next Women's Fashion Week. "This period is also an opportunity to meet buyers, particularly department stores who are interested in concepts that blend different universes. I'm convinced that in the plethora of ready-to-wear on offer, what's going to make the difference is authenticity and commitment. The relationship with wholesale can take time, but there are opportunities around different venues, such as art foundations, and I'm a big believer in hotels. These are places where it's possible to express this relationship between the collection and the artist's work", said the entrepreneur, who is moving ahead with partnerships with resorts, to offer her editions as cruise collections. With its original concept, beyond seducing buyers, AYT Studio is also imagining a new approach to fashion distribution.
Fashion Network
4 hours ago
- Fashion Network
Doucal's turbocharges retail, eyes US for wholesale expansion
Doucal's, the Italian luxury footwear brand founded in 1973, plans to expand its retail network, which currently includes three mono-brand stores (in Milan, Paris, and Doha). The label also recently opened a franchise store in Moscow, at Gum, in partnership with a local affiliate. "Following our expansion in Moscow, our next target is the Middle East, a very dynamic market at the moment, where we will continue to collaborate with partners. We plan to open a boutique in Istanbul by the end of this year, followed by a store in Ankara in 2026; within the same region, we are also considering expansion to Beirut and further development in Doha," Gianni Giannini, CEO and Creative Director of the brand, told "Additionally, we are considering upgrading our current boutique on Via Gesù in Milan to a larger space, while remaining within the Quadrilateral." In the direct-to-consumer sector, the company is experiencing significant success with its e-commerce platform, which experienced 50% growth in both 2024 and the first six months of this year. "Given that our platform is not yet fully global, there remains a lot of potential for growth," said the entrepreneur. The brand is also focused on enhancing its wholesale channels, with particular attention directed towards the US: "The US market is complex and one that we have studied extensively. We are approaching it with a strategic organisational and distribution plan. This August, we will participate in the Chicago Collective fair and have representation in a multi-brand showroom in New York, where Doucal's will be the sole footwear brand," Giannini continues. "There are significant opportunities here: during challenging economic times, retailers seek novel offerings for their clientele, and we are positioning ourselves to be recognised as a leading option." The CEO expressed satisfaction with the brand's financial performance in 2024, which concluded with single-digit growth despite the challenging economic climate, bolstered in part by the strength of its women's collection, which is expanding its range and distribution. Doucal's employs approximately 120 people and generates 70% of its revenue from international markets, with Northern Europe—led by Germany—and the Middle East serving as primary market regions. The Doucal's collection for S/S 2026, titled Terre du Dèsert, draws inspiration from a journey across Italian deserts—enchanting territories sculpted by wind and tranquillity—such as the Murgia in Apulia, the Accona Desert in Tuscany, the rugged landscapes of the Marche, and the sun-drenched expanses of Sardinia and Sicily. The brand's designs feature considered proportions and textured materials, with a palette that transitions from sandy tones to its luminous Horizon Blue, a natural colour that evokes the horizon's depth and the promise of a serene oasis. Among the highlights of the upcoming summer collection is the Norwich loafer, distinguished by its tapered silhouette and semi-square toe, crafted with Soft Blake construction and lined in soft suede with a velvety texture.
