# Michael Kors owner Capri cuts forecasts as demand slows, shares plunge 20%
Published: 2023-02-08
Category: Investment
Category URL: https://entrepreneurtribune.com/category/investment/
Meta Title: Michael Kors owner Capri Holdings cuts profit forecast amid
Meta Description: Capri Holdings Ltd, owner of Michael Kors, slashes profit forecast as demand for luxury goods slows. Share prices plummet 20%.
URL: https://entrepreneurtribune.com/michael-kors-owner-capri-cuts-forecasts-as-demand-slows-shares-plunge-20/

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qsqu1j002vwirgtlcwq54p/images/2023-02-08t120022z2lynxmpej170igrtroptp4capri-holdings-results-1737049154660-compressed.jpg)

(Reuters) -Michael Kors owner Capri Holdings Ltd cut its annual profit [forecast](https://entrepreneurtribune.com/standard-chartered-lowers-vietnam-2024-growth-forecast-to-6-0/) on Wednesday, hurt by a slowdown in demand for its luxury handbags and apparel in department stores, sending its shares tumbling 20% before the bell.

High-end fashion companies weathered decades-high inflation better than other industries for most of last year as affluent shoppers dipped into pandemic savings, but persistently increasing prices have now prompted even high-end spenders to stem their splurging on designer labels.

Industry experts have warned that accessible luxury brands like Michael Kors are likely to feel a bigger pinch than higher-priced brands like Hermes and Dior due to their core young customer base having less wealth than the luxury goods industry’s traditional clientele.

[Michael](https://entrepreneurtribune.com/feds-powell-central-bank-forecasts-dont-point-to-urgent-action/) Kors revenue from the Americas fell 4.5% to $777 million in the company’s third quarter ended Dec. 31.

The brand’s revenue from Asia fell nearly 18% as China’s decision to dismantle its zero-COVID policy late last year spurred a surge of infections in the world’s second-largest economy and dulled store traffic.

Capri, which also owns the Jimmy Choo and Versace brands, said it now expects annual sales of $5.56 billion, down from its prior estimate of $5.70 billion. It cut its earnings per [share](https://entrepreneurtribune.com/novo-nordisk-to-begin-2024-share-buybacks/) forecast to $6.10 from $6.85.

The company earned $1.84 per share, excluding items, in the third quarter, missing analysts’ estimates of $2.22, according to Refinitiv IBES data.

It also [forecast](https://entrepreneurtribune.com/standard-chartered-lowers-vietnam-2024-growth-forecast-to-6-0/) fiscal 2024 earnings per share of $6.40 on revenue of $5.8 billion. Analysts expect earnings per share of $7.24 on revenue of $6.03 billion.

(Reporting by Uday Sampath and Anne Florentyna Gnanaraja Sekar in Bengaluru; Editing by Maju Samuel)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---