The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Michael Kors parent Capri Holdings Ltd raised its fiscal 2022 forecast for profit and revenue on Tuesday, betting on a surge in demand for luxury products as consumers emerging out of lockdowns look to upgrade their wardrobes.
Capri Holdings, which also owns luxury brands Versace and Jimmy Choo, is benefiting from a bump in online sales as consumers with record savings are splurging on handbags and shoes.
“As the world reopens, we are pleased to be seeing better than expected performance from all three of our iconic fashion luxury houses,” chief executive John Idol said.
Bigger rivals LVMH, Hermes and Gucci-owner Kering have also benefited, with traditionally reluctant luxury product sellers investing heavily to build their online presence.
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Capri expects annual revenue of about $5.15 billion, compared to previous forecast of about $5.10 billion and adjusted earnings to be between $3.80 and $3.90 per share, from $3.70 to $3.80 earlier.
Analysts are projecting revenue of $5.15 billion for the year started April and earnings of $3.87 per share, according to IBES data from Refinitiv.
By Nivedita Balu; Editor: Rashmi Aich
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.