Versace sneakers, Michael Kors Fuel Shoes boots – Footwear News

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The shares of Capri Holdings Ltd. jumped 7% on Wednesday after fiscal third-quarter earnings beat estimates following a healthy holiday season.

Capri Holdings reported Wednesday morning that its third-quarter net revenue rose 24% to $1.6 billion. Net income was $322 million, compared to $179 million in the same quarter of 2020. Adjusted net income was $339 million.

During its earnings call on Wednesday, Capri Holdings Chairman and Chief Executive Officer John D. Idol said, “Capri Holdings’ strong holiday results are a testament to the strength of our brands as well as the hard work and the dedication of all our employees around the world. I am particularly pleased that we were able to achieve these results, while weathering the current headwinds associated with the pandemic, including regional restrictions and supply chain challenges. For the company’s three luxury brands – Versace, Jimmy Choo and Michael Kors – footwear played a role in the success of earnings estimates during the quarter.

Versace’s revenue rose 29% to $251 million in the third quarter. Each category performed well, with a special shoutout for shoes. Women’s shoes posted double-digit gains. The Trigreca and La Greca sneaker styles were big wins for the brand. Versace has also seen a positive response to the new Greca Maze Trainer for men which features a chunky Greca pattern sole.


Maluma stars in Versace’s latest men’s campaign.

CREDIT: Courtesy of Versace

“Overall, Versace’s third quarter results demonstrate the strength of the brand and reinforced our confidence in our ability to grow the house to at least $2 billion in revenue,” Idol noted. “With the launch of La Greca, we now have the key elements in place to realize the full potential of this powerful brand. We are more optimistic than ever about Versace’s future growth opportunities. »

At Jimmy Choo, revenue rose 47% to $178 million in the quarter. Footwear sales grew by double digits in the quarter, driven by an upturn in dress shoe styles as people engaged in social activities, enjoyed special occasions and celebrated the holidays. Casual styles also did well, from sheepskin slippers embellished with pearls and delicate crystals to crystal-embellished combat boots. The brand has also seen sneaker growth with positive consumer reaction to its new Memphis sneaker. “We are encouraged by the progress we are making toward our goal of growing Jimmy Choo’s revenue to $1 billion over time,” Idol said.

And at Michael Kors, revenue rose 20% to $1.18 billion. As sales surged, Chief Financial Officer Thomas J. Edwards admitted on Wednesday’s call that “revenue growth would have been even greater” for Michael Kors if the brand had more products available to meet its needs. consumer demand. “We estimate that inventory constraints had a mid-single-digit impact on Michael Kors’ third-quarter growth rate,” Edwards said.

During the quarter, the global “Signature” activity represented 41% of the assortment compared to 35% last year. In accessories, Signature’s penetration was even greater. Sales of accessories in the Michael Kors retail channel grew by double digits globally as consumers reacted to new holiday updates. Moving on to footwear, Michael Kors had strong performances in boots and ankle boots that featured signature brand elements and signature details. “There are certain classifications in footwear, whether it’s our sneakers, clothing classification, or boot classification, where we have real product authority,” said Josh Schulman, CEO of Kors, who will succeed Idol at Capri.


kendall jenner, michael kors collection, spring summer 2022

Kendall Jenner posing for the Spring 2022 Michael Kors collection.

CREDIT: Courtesy of Michael Kors

“Overall, we are extremely optimistic about the future growth of Michael Kors. The strategies we put in place before the pandemic generated strong consumer demand and attracted new, younger consumers. Additionally, we are increasing profitability by continuing to elevate brand positioning,” Idol added.

On inventory, Edwards Circle backed up the issue, saying on the call that Capri expects inventory to rise from a year earlier. “We will continue to closely manage inventory, but levels need to increase to support revenue growth and ensure we meet consumer demand, and we are also launching a new program in which we expect to receive the basic product more early,” Edwards noted. “This will allow us to better meet consumer demand and reduce transportation costs. As a result, inventory growth is expected to outpace sales growth over the next 12 months. »

Looking ahead, the company raised its full-year guidance and now expects total revenue of around $6.1 billion. For the fourth quarter, Edwards noted that it expects total company revenue of about $1.4 billion, including about $75 million associated with Week 53 at Jimmy Choo and Michael Kors. “We expect Versace revenue of approximately $310 million, Jimmy Choo revenue of approximately $140 million and Michael Kors revenue of approximately $950 million,” he added.

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