Capri Holdings’ Q4 revenue slides 11.3% as COVID-19 shuts stores in recent months
- Capri Holdings’ Q4 revenue slides 11.3% as COVID-19 shuts stores in recent months.
- The multinational fashion holding company expects a 70% decline in sales in Q1.
- The Michael Kors owner noted a 6.0% increase in revenue in the full financial year.
Capri Holdings (NYSE: CPRI) released its quarterly financial results on Wednesday that posted a significant decline in its revenue in the fourth quarter. The company attributed the decline to the Coronavirus pandemic that pushed the majority of its stores in North America, Asia, and Europe into temporarily shutting down in recent months. Capri had estimated an £80.57 million hit to revenue in February due to the outbreak in China.
Shares of the company remained almost flat in premarket trading on Wednesday. At £12.60 per share, Capri Holdings is roughly 60% down year to date in the stock market after recovering from a low of £6.06 per share in March. Learn more about how to choose winning stocks.
Capri Holdings’ Q4 financial results versus analysts’ estimates
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
At £960 million, Capri’s revenue in the fourth quarter came in 11.3% lower than the same quarter last year. Experts, however, had forecast an even lower £900 million in revenue for the company in Q4. The American multinational fashion holding company recorded 8.86 pence of adjusted earnings per share in the recent quarter.
Net loss attributable to the company printed at £443.93 million in the quarter that ended on 28th March versus the year-ago figure of £15.31 million in profit. Capri said that it reopened several of its worldwide stores as governments started easing COVID-19 restrictions in recent months. It also expressed confidence that sales are recovering faster than expected at these stores.
Capri Holdings expects a 70% decline in sales in Q1
Shipments to department stores, Capri added, remain disrupted and are likely to weigh on its Q1 financial results. For the fiscal first quarter, the New York-based company now forecasts a 70% decline in sales. Experts, on the other hand, are expecting a 46.7% sales decline in Q1.
Capri Holdings also published its annual results on Wednesday. For the full-year, the Michael Kors owner saw a 6.0% increase in revenue and registered £3.13 of adjusted earnings per share.
On an adjusted basis, the 39-year-old company said its operating margin came in at 8.3% in the fourth quarter and 13.6% for the full financial year.