Capri Holdings, owner of Michael Kors, Jimmy Choo and Versace, has cut its expected full-year sales revenue following a slowdown at Michael Kors.
The group said it expects revenue of approximately $6bn (£4.7bn) for the current year, down from a previous outlook of $6.1bn (£4.8bn).
Michael Kors’ revenue is expected to be $4.4bn (£3.4bn), below previous guidance, following “unfavourable foreign currency impact and lower wholesale revenue” at the brand. Like-for-like store sales are expected to be flat.
At Versace, the group plans to rapidly expand the business, including increasing strategic investments to enhance brand engagement, expanding Versace’s retail fleet globally, and launching omnichannel capabilities. It expects brand revenue of approximately $900m (£712m) and like-for-like store sales growth in the mid-single digits
At Jimmy Choo, Capri Holdings plans to continue to innovate and grow in its women’s footwear and accessories business and further expand Jimmy Choo’s retail footprint. The company expects revenue of approximately $650m (£514m) and like-for-like store sales growth in the mid-single digits.
John D Idol, chairman and chief executive, said: “Looking ahead, 2020 will be an investment year for our group, and we believe our initiatives will deliver strong revenue growth for Capri Holdings. Longer term, our three brands position Capri Holdings to accelerate revenue from $6bn (£4.7bn) to $8bn (£6.3bn) dollars, which will be led by Versace and Jimmy Choo, with Michael Kors remaining a strong foundation for Capri Holdings.”