Capri, Once Michael Kors, Climbs After Raising Revenue Forecast
(Bloomberg) -- Capri Holdings Ltd., the company behind Michael Kors, Jimmy Choo and now the Gianni Versace brand, climbed as much as 11 percent in early trading after raising its forecast for full-year revenue.
- Revenue will be about $5.22 billion, up from a previous outlook for $5.13 billion, the company said Wednesday. Analysts had projected $5.2 billion.
- After years of heavy discounting that eroded the cachet of the Michael Kors brand, Chief Executive Officer John Idol said Wednesday he expects the label to return to growth next year. Same-store sales for Michael Kors retail declined 2.4 percent last quarter, compared with the 2 percent drop seen by analysts.
- The company completed its 1.83 billion euro ($2.2 billion) purchase of Gianni Versace SpA last quarter. It said it expects about $900 million in revenue from the label in the next fiscal year.
- Investors wanting more details have some waiting to do: The luxury house said it will give more guidance, including long-term expectations for its suite of brands, at its investor day in June.
- Shares of Capri Holdings climbed as high as $48.50 in premarket trading. The stock had jumped 15 percent this year through Tuesday’s close, outpacing the benchmark S&P 500 Index.
- Read the statement.
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