Sale of Versace to Prada Group
Capri Holdings announced the pending sale of Versace to Prada Group, which will help reduce debt levels and potentially reinstate a share repurchase program. This transaction is expected to strengthen the company's financial foundation and refocus resources on Michael Kors and Jimmy Choo.
Positive Trends at Michael Kors
Despite a 16% revenue decline, Michael Kors showed signs of improvement with a 10% year-over-year increase in its global consumer database and a sequential improvement in March that continued into the first quarter. New storytelling and product initiatives are beginning to resonate with consumers.
Growth in Jimmy Choo Accessories
Jimmy Choo saw strong performance in new accessory styles, including its fastest-selling day bag in five years. The brand's global consumer database increased by 11% year-over-year.
Improvement in Full-Price Sales
Michael Kors experienced strong full-price sell-throughs in new accessories groups, with positive responses from consumers. The brand saw an increase in average unit retail (AUR) in full-price retail stores.