Capri sends a warning shot across the luxury sector after pointing to weak demand

seekingalpha05-30

Capri Holdings Limited (NYSE:CPRI) fell in postmarket trading on Wednesday after missing consensus estimates with its FQ4 earnings report. Total revenue fell 8.4% year-over-year to $1.22 billion. On a...

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On a...</p>\n\n<a href=\"https://seekingalpha.com/news/4111303-capri-sends-a-warning-shot-across-the-luxury-sector-after-pointing-to-weak-demand\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Capri sends a warning shot across the luxury sector after pointing to weak demand</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCapri sends a warning shot across the luxury sector after pointing to weak demand\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-30 04:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/4111303-capri-sends-a-warning-shot-across-the-luxury-sector-after-pointing-to-weak-demand><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Capri Holdings Limited (NYSE:CPRI) fell in postmarket trading on Wednesday after missing consensus estimates with its FQ4 earnings report. Total revenue fell 8.4% year-over-year to $1.22 billion. On a...</p>\n\n<a href=\"https://seekingalpha.com/news/4111303-capri-sends-a-warning-shot-across-the-luxury-sector-after-pointing-to-weak-demand\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0690374961.EUR","symbol_name":"FUNDSMITH EQUITY \"R\" (EUR) INC","start_time":0,"source_url":"https://seekingalpha.com/news/4111303-capri-sends-a-warning-shot-across-the-luxury-sector-after-pointing-to-weak-demand","article_id":"2439825638","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1270370875/image_1270370875.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2439825638","pubTimestamp":1717014363,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Capri Holdings Limited (NYSE:CPRI) fell in postmarket trading on Wednesday after missing consensus estimates with its FQ4 earnings report. 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Total revenue fell 8.4% year-over-year to $1.22 billion. On a constant currency basis, total revenue decreased by 7.9% during the quarter. Total company retail sales declined in the mid-single-digits, with trends being impacted by softening demand globally for fashion luxury goods. Revenue decreased in the high-teens for the wholesale business, driven by softer demand in the Americas and EMEA. Versace revenue was down 3.6% during the quarter to $264 million compared to a year ago, and was 2.9% lower on a constant currency basis. The brand's retail sales increased by mid-single-digits, while wholesale revenue decreased by double-digits. Versace operating income plunged to $1M from $14M a year ago. Jimmy Choo revenue fell 9.3% to $137 million compared to the prior year, driven lower primarily by softening demand globally for fashion luxury goods. Jimmy Choo operating loss was $8 million during the quarter. The decline in operating margin rate to -5.8% from -4.6% was primarily due to lower full price sell-throughs and expense deleverage on lower revenue. Michael Kors revenue fell by 9.7% to $822 million and was down by 9.2% on a constant currency basis. The decline versus prior year was primarily attributable to softening demand globally for fashion luxury goods. Retail sales declined in the high-single-digits, while wholesale revenue decreased double-digits Michael Kors operating income was $116 million, and operating margin was 14.1% of sales vs. 16.2% a year ago. CPRI's overall adjusted gross profit was $767 million, and adjusted gross margin was 62.7% vs. 64.6% a year ago. Gross profit margin decreased relative to last year, primarily driven by lower full price sell-throughs. The company's net inventory as of December 30 was down 18.4% Y/Y to $862 million. Capri's (CPRI) cash flow from operating activities for the quarter was an inflow of $44 million, while free cash flow was an outflow of $6 million. CEO update: \"Overall, we were disappointed with our results, as performance in the fourth quarter continued to be impacted by softening demand globally for fashion luxury goods. In our retail channel, sales trends improved sequentially in the Americas and EMEA, while trends slowed in Asia. In our wholesale channel, sales remained challenged.\" Due to the pending merger transaction between Capri Holdings (CPRI) and Tapestry (TPR), the company does not intend to provide financial guidance. Shares of Capri (CPRI) moved 3.35% lower in postmarket action on Wednesday. Tapestry (TPR), Ralph Lauren (RL), Moncler S.p.A (OTCPK:MONRF), Compagnie Financière Richemont SA (OTCPK:CFRHF), Richemont, LVMH Moët Hennessy (OTCPK:LVMHF), Kering SA (OTCPK:PPRUF), Swatch Group (OTCPK:SWGAY), and Estee Lauder (EL) are all on watch after the weak read on luxury spending.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2439825638"}