Capri Holdings announced fiscal second quarter revenue and earnings below expectations as weakened consumer spending on luxury goods in the Americas and e-commerce implementation challenges weighed on its performance.
The luxury fashion group, whose brands include Michael Kors, Versace and Jimmy Choo, reported an 8.6% year-over-year decrease in revenue to $1.29 billion, below Wall Street estimates of $1.33 billion.
Earnings per share of $1.13 also fell short of the expected $1.49.
CEO John Idol said that Capri's second quarter results were "below our expectations due to macro-economic headwinds as well as e-commerce implementation-related challenges."
He noted that in July, the company introduced a new e-commerce platform for its Michael Kors brand in the Americas.
“While we are excited about the long-term benefits, the transition negatively impacted our second quarter results,” he said. “Additionally, during the quarter consumer demand for fashion luxury goods softened primarily in the Americas."
Capri remains on track to complete its merger with Tapestry Inc (NYSE:TPR) during the 2024 calendar year.
“We are confident that this combination will deliver value to our shareholders as well as provide new opportunities for our dedicated employees around the world as Capri Holdings becomes part of a larger and more diversified company,” CEO Idol said.
Capri shares traded down 1.9% at US$47.30 late morning on Friday. The stock is down 23% in the year to date.
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