// Sluggish sales at Michael Kors prompts owner Capri to cut sales forecast from $6bn to $5.8bn
// Michael Kors and Jimmy Sales down, but Versace went up
// Total revenue for the company rose nearly 12% to $1.35bn
Capri Holdings has slashed its full-year sales forecast again after it missed quarterly revenue targets due to sluggish sales from Michael Kors and Jimmy Choo.
Michael Kors, which accounts for the bulk of the Capri’s sales, still depends heavily on selling through department stores, where sales are struggling as more shoppers choose to buy online.
The retailer is also rolling back discounts and inventories at its own stores as it looks to drive more full-price sales.
While this led to a better-than-expected quarterly profit, Michael Kors’ like-for-like sales fell in the low single digits during the quarter.
Michael Kors revenue dropped by 4.8 per cent to $981 million (£809.5 million).
Sales at stablemate Jimmy Choo also fell, dropping by 8.7 per cent to $158 million (£130.3 million) in the reported quarter.
However, quarterly sales at Versace – which Capri acquired last year for about $2 billion saw revenue of $207 million (£170.7 million), beating analyst estimates of $202.37 million.
Meanwhile, net income attributable to the company fell to $45 million (£37.1 million) from $186 million, due to a $97 million impairment charge.
Excluding items, Capri earned 95c (78.3p) per share, beating analyst estimates of 90c.
Total revenue for the company rose nearly 12 per cent to $1.35 billion (£1.11 billion), missing analysts’ average estimate of $1.37 billion as reported by Reuters.
Due to the results, Capri now expects full-year revenue to come in at $5.8 billion, down from its earlier forecast of $6 billion.