In the Americas, Michael Kors revenues fell 11% to $405 million, impacted by inventory delays as well as Capri’s planned reduction in markdowns and promotional activity, CFO Tyler Reddien said on Friday. Jimmy Choo revenues were up 24% to $42 million in the region. Michael Kors EMEA (Europe, the Middle East and Africa) revenues fell 5% to $185 million, partly due to effects of the ongoing conflict, while Jimmy Choo’s rose 13% to $76 million. Asia revenues dipped 1% for Michael Kors and fell 7% for Jimmy Choo.
Idol noted the impact of fresh products at both brands, including the $359 Hamilton Soft at Michael Kors, which the CEO referred to as a bestseller. “The design teams, led by Michael, are starting to very significantly hit trends in the marketplace, and you’re seeing that in accessories, and now we’re starting to see that in footwear as well,” Idol added.
Michael Kors launched on TikTok Shop in Q2. “Early performance has exceeded our expectations,” Idol told investors, “generating strong engagement and sales while further expanding our reach with a new generation of luxury consumers.” He also noted Michael Kors’s increasing popularity with Gen Z shoppers and influencers.
Idol nodded to luxury’s price hikes, which have turned off many consumers seeking better value; he sees the moment as an opportunity for Capri’s brands, especially Michael Kors. “As you know, the industry, in particular some of the European luxury brands, are having a bit of a struggle right now,” he said. “We actually think this is a super time for us to be able to resonate with consumers who are being a bit more choiceful.”
As in past quarters, Idol doubled down on his rejection of speculation that Capri might sell Jimmy Choo. “Jimmy Choo is not for sale,” he told investors. “Jimmy Choo, we think, is a big opportunity. It’s a business that can be $800 million. We’re getting excited about even thinking bigger than that.”
With revenues raised, Capri is confident about the year ahead. “With additional newness planned throughout the season and into the spring, we anticipate further sequential revenue improvement through the back half of the year,” Idol said.
