Capri Holdings said it expects growth to accelerate in the second half of the year as its Michael Kors reset gains traction through new products, higher marketing spending, reduced promotions and store renovations. Speaking at the Goldman Sachs Global Retail and Consumer Conference, Chairman and CEO John Idol said the company has spent roughly the past 18 months resetting product, marketing and store strategies, particularly at Michael Kors, and that early green shoots are becoming tangible results. Michael Kors ended the prior quarter with inventories down nearly 27% and with 50% less clearance and markdown inventory than a year earlier, while about half of full-price accessories sales now come from icon products that do not go on sale. Chief Financial Officer Tyler Reddien said Capri expects Michael Kors to return to growth in the second half as inventory levels normalize and new products arrive through the fall and holiday seasons, with marketing spending rising to nearly 10% of revenue in the back half. At Jimmy Choo, accessories sales are currently increasing by more than 20%, sneakers have grown to roughly 10% to 15% of sales, and Reddien said the brand is expected to be profitable this year. Management maintained its full-year outlook, including a projected 40% increase in earnings per share, and said average prices are expected to rise in the second half on higher full-price sell-throughs and a lower promotional cadence.
Capri Holdings LtdManagement maintained full-year outlook including a projected 40% EPS increase and expects Jimmy Choo to be profitable this year.
