Capri Holdings Limited reported significant financial changes in its latest 10-Q filing for the quarter ending September 28, 2024. Total revenue for the three months was $1,079 million, a decrease of $212 million (16.4%) from $1,291 million in the same period last year. For the six months, revenue fell to $2,146 million, down 14.8% from $2,520 million. The decline was attributed to softening demand for luxury goods, particularly affecting the Michael Kors and Versace brands.
Net income for the quarter was $23 million, a sharp decline of 74.4% from $90 million in the prior year. Net income attributable to Capri was $24 million, down 73.3% from $90 million. The company reported a loss from operations of $38 million for the quarter, compared to a profit of $100 million in the same period last year. For the six months, the loss from operations was $46 million, compared to a profit of $180 million in the previous year.
Segment performance varied, with Michael Kors generating $738 million in revenue, down 16.0% from $879 million. Versace's revenue decreased by 28.2% to $201 million, while Jimmy Choo saw a slight increase of 6.1% to $140 million. The gross profit margin for the quarter was 64.3%, slightly down from 64.4% a year earlier.
Total current assets increased to $1,667 million from $1,608 million, while total assets rose to $6,792 million from $6,689 million. However, total liabilities also increased to $5,306 million from $5,089 million, leading to a decrease in total shareholders’ equity to $1,484 million from $1,599 million.
Strategically, Capri is navigating a merger agreement with Tapestry, Inc., which has been approved by both companies' boards and shareholders but is pending regulatory approval. The Federal Trade Commission (FTC) filed a lawsuit to block the merger, claiming it violates antitrust laws, and a preliminary injunction was granted on October 24, 2024. Capri and Tapestry have filed an appeal against this decision.
The company also faced restructuring charges related to its Global Optimization Plan, amounting to $1 million for the quarter. During the same period, it closed eight retail stores, contributing to a total of 19 closures in the first half of the fiscal year. The company continues to manage challenges related to supply chain disruptions and fluctuating commodity prices, which have impacted its operations and financial results.
About Capri Holdings Ltd
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.