Capri Holdings (NYSE:CPRI) reports comparable sales fell 4.2% for the Michael Kors business in Q3 and were flat for the Versace business in Q3. A mid single-digit comp was recorded by the Jimmy Choo business.
Capri's gross margin rate fell 10 bps to 61.0% of sales and operating margin dropped 340 bps to 14.0% of sales.
The company ended the quarter with a net inventory position of $1.073B, up 39.7% increase Y/Y, primarily reflecting incremental Versace inventory.
Looking ahead, Capri sees Q3 revenue of about $1.53B vs. $1.60B consensus and EPS of $1.55 to $1.60 vs. $1.56 consensus.
Shares of Capri are inactive in the premarket session.
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