Photo: Hunter Abrams Capri Holdings said revenue dropped 6 per cent to $1.51 billion year-on-year in the third quarter of 2023, missing analyst expectations, due to weakened wholesale demand. Performance in the quarter was “more challenging than anticipated”, said CEO John Idol in a statement. Gross profit was $1.01 billion versus $1.05 billion compared to the same period the prior year, and gross margin was 66.5 per cent compared to 65.1 per cent last year. The company lowered its 2023 annual revenue forecast in response, to $5.56 billion from its previous outlook of $5.7 billion. Shares plummeted 24 per cent on Wednesday morning. “The earnings miss was driven by broad-based underperformance with sales, gross margin, and operating expenses all coming in below expectations,” said analyst Dana Telsey, CEO and chief research officer of Telsey Advisory Group, in a note. “[Capri]’s fiscal third quarter results were disappointing, in our view. With expectations for continued softness over the final two months of FY23, [Capri] issued a much weaker fourth quarter guide and, in turn, lowered the annual outlook across the board as well.” “We were disappointed with the performance of our global wholesale business in the quarter,” Idol said. Sales in […]
Click here to view original web page at www.voguebusiness.com
