Capri Holdings (NYSE: CPRI), parent company of Versace, Jimmy Choo and Michael Kors, surpassed Q4 earnings and revenue estimates Wednesday. Nevertheless, it also reported a loss of USD1.21 per share. Shares were up 3% before the opening bell upon the news.
John D. Idol, the Company’s Chairman and Chief Executive Officer, said, “Looking back on fiscal 2021, the COVID-19 pandemic has had a profound effect on the entire world. The unprecedented challenges tested our business and industry in ways we could never have imagined. Despite these challenges, we were encouraged by the performance of all three of our luxury houses, with revenue and earnings significantly exceeding our expectations.”
The company reported quarterly earnings of USD0.38 a share, compared to the expected loss of USD0.01 a share. Meanwhile, revenue totaled USD1.2 Billion, 15.95% higher than analysts estimates.
“We were pleased with our fourth quarter results as revenue improved sequentially and exceeded our expectations. Retail sales increased 13% versus prior year, driven by an improvement in both E-Commerce and store sales. As we continued to execute on our strategic initiatives, earnings were higher than anticipated driven by better revenue results and gross margin expansion across all three of our luxury houses” Idol said.
Capri revealed it now predicts that annual revenue and profits will surpass Wall Street expectations. The company believes customers will continue to visit stores within the U.S. as Covid-19 vaccinations continue to rollout. Furthermore, demand for luxury apparel and accessories has rebounded as people begin to travel once again.
Idol continued on to say, “Looking forward, we remain optimistic about the outlook for the fashion luxury industry and Capri Holdings. As the world starts to recover from the pandemic, we are confident in our growth opportunities for Versace, Jimmy Choo and Michael Kors.”