店铺优化计划

Search documents
Capri (CPRI) - 2026 Q1 - Earnings Call Transcript
2025-08-06 13:30
Financial Data and Key Metrics Changes - Total company revenue decreased 6% year-over-year to $797 million, with earnings per share at $0.50, reflecting a sequential improvement in trends across all regions [5][27][30] - Net income was $60 million, resulting in diluted earnings per share of $0.50, exceeding expectations due to better-than-anticipated results at both Michael Kors and Jimmy Choo [27][30] - Gross margin was approximately flat at 63%, with higher tariffs negatively impacting gross margin by 30 basis points [30][31] Business Line Data and Key Metrics Changes - At Michael Kors, revenue decreased 6% year-over-year, with retail and wholesale channels showing similar trends [5][28] - Jimmy Choo's revenue decreased 6.4% year-over-year, with retail sales declining mid-single digits and wholesale declining double digits [16][29] - Accessories at Michael Kors saw strong full-price sell-throughs, while footwear revenue was down double digits, driven by a decline in the dress category [12][17] Market Data and Key Metrics Changes - Revenue in The Americas decreased 9%, while EMEA revenue increased 6%, and Asia revenue declined 15% [28] - Michael Kors revenue in The Americas decreased 8%, while EMEA increased 9% and Asia declined 16% [28] - Jimmy Choo's revenue in The Americas decreased 12%, with EMEA increasing 1% and Asia decreasing 14% [29] Company Strategy and Development Direction - The company is focused on stabilizing its business in fiscal 2026 while laying a foundation for growth in fiscal 2027, with strategic initiatives aimed at reenergizing its luxury brands [4][5][24] - A significant store renovation program is planned, targeting approximately 50% of the store fleet over the next three years to enhance consumer experience [14][39] - The company aims to achieve $4 billion in revenues for Michael Kors and $800 million for Jimmy Choo over time, leveraging data analytics and consumer insights [15][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about early signs of strategic initiatives working, with expectations for trends to improve in the second half of fiscal 2026 [24][41] - The global macroeconomic environment remains dynamic, with updated guidance reflecting increased tariff rates impacting cost of goods sold [34][37] - The company anticipates a gradual sequential improvement in trends supported by new product deliveries and marketing initiatives [38][39] Other Important Information - The Versace transaction is expected to close in 2025, with proceeds aimed at substantially reducing debt [72][74] - The company is focused on reducing promotional activity, particularly in the outlet channel, to improve gross margins [60][62] Q&A Session Summary Question: Can you elaborate on recent sell-through trends on product launches across direct-to-consumer and wholesale? - Management noted that strategic storytelling and marketing changes have led to improved consumer engagement and sell-throughs, particularly in full-price channels [44][46] Question: How do you expect pricing trends to translate to margins in the back half of this fiscal year? - Management indicated that while tariffs will impact margins, strategic initiatives and reduced promotional activity are expected to support gross margin expansion in fiscal 2027 [54][58] Question: Are you seeing signs that consumers are following you into the retail channel? - Management confirmed that closing underperforming stores has led to a reevaluation of market presence, with plans to reopen stores in certain areas where the brand was previously absent [93][95]