Jimmy Choo stumbles on weaker US demand
US group Capri Holdings has reported an 8.6% dip in revenue for the second quarter of fiscal 2024 to $1.29 billion, driven by lower demand in the US and the costs of a new ecommerce platform.
The owner of Versace, Jimmy Choo and Michael Kors said transitioning to the platform created “greater than anticipated” challenges, impacting revenue by about £50 million.
Jimmy Choo revenue of $132 million decreased 7%, driven primarily by falling demand, mainly in the Americas. Revenue in the Americas declined 11.6%, while revenue in EMEA was flat and revenue in Asia declined 11.9%.
Jimmy Choo’s global database increased by 0.8 million names, representing 16% growth over the same period last year.
Group CEO John Idol said: "Capri Holdings' second quarter results were below our expectations due to macro-economic headwinds as well as ecommerce implementation related challenges.
“Despite near-term challenges, we remain focused on executing our strategic initiatives to drive long term sustainable growth at all three of our luxury houses. Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 11.4 million new consumers added across our databases, representing 15% growth over the last year. This reflects the strong brand equity and enduring value of our three iconic houses.”
He added that by joining with Tapestry – which will complete next year – the group will have greater resources and be able to expand globally.
