Capri Holding reported sales figures for Jimmy Choo, Versace, and Michael Kors.
Capri Holding, which manages brands Jimmy Choo, Versace, and Michael Kors, presented its financial report for 2021. Net income increased by 80% to $322 million, and revenue increased by 24% to $1.6 billion.
Versace's sales for the reporting period grew by 29%, and operating profit nearly doubled. Jimmy Choo's revenues grew by 47%, and its profit grew from $8 million to $16 million, compared to a loss of $8 million a year earlier. Sales at Michael Kors were up 20% and yields reached $335 million.
"Capri's success was driven by high consumer spending as shoppers sought out luxury clothing, accessories, and footwear over the holiday season," said GlobalData managing director Neil Saunders. As a result of the return to normalcy trend, all portfolio brands of the holding company benefited.
The company announced plans to increase the number of Versace-branded stores from 212 to 200 as a result of its successful year. In addition, it was informed about future price increases for the brand's products.
Despite Capri's acquisition of Michael Kors for $2 billion in 2018, the brand remains a weak link in its portfolio. The brand needs to focus more on defining its positioning, say experts. The brand's product sales last quarter were considered disappointing by analysts. Capri announced in its presentation that up to $500 million more would be invested in the Michael Kors business.