The company’s total revenue reached $1.36 billion, marking an 8.5% improvement in the first quarter that ended July 2. The results beat analysts’ estimates of $1.29 billion, according to IBES data from Refinitiv.
While the company’s revenue soared, its net income fell to $203 million, or $1.40 per share, down from $219 million, or $1.41 per share, a year ago.
The results come at a time when players across the broader retail industry are scaling back their forecasts due to a decline in consumer demand. However, players such as Capri Holdings, which also owns Versace and Jimmy Choo, are showing remarkable resilience as middle and high-income consumers have been undeterred by the uneconomic crisis and have continued to spend on luxury products since the return of socializing.
On the other hand, lower-income consumers have been walloped by rising costs as most of their income is now spent on buying essential products such as food, fuel, and accommodation.
“Looking forward, we remain optimistic about the long-term growth potential for Versace, Jimmy Choo, and Michael Kors,” said John D. Idol, the company’s chairman and chief executive officer. “With our portfolio of iconic, founder-led fashion luxury brands, Capri Holdings is positioned to deliver multiple years of revenue and earnings growth.”