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| Statement |
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| So all the things that we started out saying we were going to do before COVID and also the things that we are executing against that we feel good about, we think are going to have impact |
| I think we did a great job managing our inventories all the way through COVID and then coming out of COVID and I think we told you that we would sequentially reduce our inventories across the company and I think we did that |
| We remain confident in our ability to achieve our long-term goals over time due to the resilience of the luxury industry, the strength of our three powerful iconic brands and the talented group of employees executing our strategic initiatives |
| We feel that we have a very good road map to get there |
| And as that business gets closer to $1 billion, it's going to be able to generate significant operating profit dollars for the company |
| In fact, we achieved record revenue at Versace and Jimmy Choo in fiscal '23 |
| This is a testament to the power of our diversified business model |
| We feel like we're in a very good position |
| We were still able to deliver strong operating margins of 16.2% and return 1.35 billion to shareholders |
| Secondly, Jimmy Choo, we are feeling very good about what's happening in Jimmy Choo |
| Combined with the growth in our own retail channel, we believe this continues to demonstrate the strength and desirability of our luxury houses |
| Fifth, we returned $1.35 billion to shareholders through share repurchases, reflecting our strong balance sheet and free cash flow generation |
| These results demonstrate the power of our business model, the strength of our luxury houses, and the execution of our strategic initiatives |
| Starting with Versace, in fiscal '23, we achieved record revenue of over $1.1 billion, demonstrating the momentum of the brand and the success of our strategic growth initiatives |
| It is now double-digit part of the revenue for Michael Kors, which is quite impressive |
| Women's accessories was Versace's strongest performing category, with fiscal '23 sales in our retail channel up over 40% versus prior year |
| I think we're very pleased with what happened at Versace record results for that brand, record results for Jimmy Choo |
| We're very proud of the partners that we work with today |
| In fiscal '23, women's footwear sales in our own retail channel increased double-digits as we continued to gain authority in women's luxury fashion footwear |
| In terms of ready-to-wear women's performed well with sales in our own retail channels increasing double-digits |
| We have a belief that we have three very powerful brands that can all grow and we're going to invest to be able to support that growth |
| Another key indicator of demand for the Versace brand is the strength of our fragrance, eyewear and jewellery businesses, which increased strong double-digits |
| And we think we can do that much better than we're doing it today |
| The energy and excitement around the fashion show helped contribute to an approximate 40% year-over-year increase in Versace's global database |
| So I think we feel good about that |
| We have a very, very strong e-commerce business, as you know, growing |
| In fiscal '23, we achieved record revenue of $633 million as we continue to execute on our strategic initiatives to expand our accessories, revenue and capitalize on our glamorous footwear opportunities |
| So I think and when you look at the overall operating margin of the company at 16%, I think there's a lot of positive things to Capri in addition to the $1.35 billion that we returned to shareholders |
| Still not up to pre-pandemic levels, but significantly over double what we had going into this past holiday season and our partners feel great about that as well both in North America and in Europe |
| I think the three brands are in very, very good position to grow moving forward |
| Statement |
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| However, total revenue was below our original expectation, driven by double-digit declines in wholesale in the back half of fiscal '23 |
| Additionally, in wholesale, we anticipate sales will decline as our partners are taking a more cautious approach to planning the business due to the uncertain macroeconomic environment |
| Retail sales declined low single digits as we saw consumer spending soften across all brands |
| This was below our expectations, primarily reflecting expense deleverage on lower than anticipated wholesale revenue |
| And as I said, I think we made some missteps in the fall season and the beginning of the spring around the Michael Kors piece |
| Number one, we think that business will remain soft probably through the majority of the summertime |
| We expect a decline in sales as we are lapping the incredibly successful Spring '22 Fendace collaboration in both the retail and wholesale channels |
| This was driven by a decline in watches as well as a significant decline in fragrance due to the transition to our new license EuroItalia |
| We expect first quarter wholesale performance to be the weakest year-over-year, given declines at POS sales in the Americas, as well as lapping strong sell-ins the prior year as our partners built back their inventory positions |
| Additionally, as anticipated in the first quarter, we expect to see the largest year –over-year decline in the wholesale channel with revenue down approximately 30% |
| And I think that's a result of many companies having too much inventory coming out of the holiday season, heading into spring also with certain retailers reducing orders |
| In wholesale, we expect sales down double digits, given declines at POS in addition to lapping strong sell-ins the prior year as our partners built back their inventory positions |
| In the wholesale channel, revenue declined double-digits impacted by lower POS sales in the Americas as well as lapping strong sell-ins in the prior year, as our partners began to build back their inventory positions |
| By geography, total Versace revenue in the Americas decreased double-digits, driven by significant declines in wholesale |
| Retail sales declined low single digits, while wholesale revenue declined double-digits |
| Once we turned on e-commerce, a number of our stores, the volumes reduced quite significantly |
| This represents an approximate 12% decrease versus prior year, which we expect to be the largest year-over-year decline in quarterly revenue for fiscal '24 |
| As expected, sales declined in the back half of the year, which resulted in flat men's ready-to-wear sales in fiscal '23 |
| In our own retail channel, we anticipate revenue will decline mid-single digits |
| We expect first half revenue to decline in the mid-single digit range |
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