parent company of Versace, Jimmy Choo, and Michael Kors, fell sharply early Wednesday after the group posted third-quarter earnings and fiscal-year guidance that landed below expectations.
Capri (ticker: CPRI) posted adjusted earnings of $1.84 a share, while analysts had penciled in $2.22 a share, according to FactSet. The company also posted fiscal year 2023 adjusted earnings guidance of $6.10 a share, while analysts had expected $6.87.
Total revenue declined 6% year over year, and adjusted operating margins shrank to 16.9% from 22.3% a year ago.
“We were disappointed with the performance of our global wholesale business in the quarter, which resulted in expense deleverage and a lower operating margin,” said John Idol, Capri’s chairman and chief executive, in the earnings release.
“We have begun taking measures to better align operating expenses with the change in revenue by channel. At the same time we will continue to make strategic investments to drive long-term growth,” he added.
Shares of Capri fell 19.5% to $53.44 early Wednesday.
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