Jimmy Choo is not growing as fast as before. Its parent company, Capri Holdings, said that Jimmy Choo booked sales of $165 million in the fiscal third quarter ended on Dec. 28, up by 1.9 percent both in current and constant currency rates. On a currency-neutral basis, global comparable store sales were flat, but rose in the Americas and in the Europe, Middle East and Africa business region.
After better results than expected, the brand posted weak results also in the previous two quarters. It was performing much better before it was acquired in 2017 for nearly $1 billion – or a multiple of 17 times adjusted Ebitda – by Michael Kors, which was subsequently renamed Capri Holdings.
Jimmy Choo’s operating income fell to $9 million in the latest quarter, equivalent to a margin of 5.5 percent of sales, from $15 million, or a margin of 9.3 percent. On an adjusted basis, operating income was $16 million and the margin 9.9 percent. The brand is now expected to achieve an improved margin on sales of some $130 million for the present financial quarter.
Capri, which also owns the brands Versace and Michael Kors, said that group revenues totaled $1.571 billion in the third quarter, up by 9.2 percent on a reported basis and by 9.6 percent at constant currency rates.
Its net income of $210 million compared with $200 million a year ago. The adjusted net income declined to $253 million from $265 million or $1.76 per diluted share.
For the full year, Capri expects total revenues of $5.65 billion.