US-based fashion holding company Capri has reported that its revenue fell by 6.0% to $1.51bn in the third quarter (Q3) of fiscal 2023 (FY23).

In the three months to 31 December, revenues for the Versace brand declined by 0.8% to $249m, while the Jimmy Choo and Michael Kors brands reported 5.6% and 7.2% drops in revenue respectively.

Capri’s income from operations was $236m, down from $331m in the same period of last year, while its operating margin for Q3 was 15.6%.

The firm’s net income declined to $225m in Q3 2023 from $322m in the same period of FY22. Its earnings per share (EPS) decreased from $2.11 to $1.72 year-on-year.

Capri recorded a gross profit of $1.01bn in Q3 2023 compared with $1.05bn a year earlier, while its gross margin was, 66.5% against 65.1% in the prior-year period.

Capri chairman and CEO John Idol said: “Overall, our performance in the third quarter was more challenging than anticipated.

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“However, many aspects of our business performed well, in particular we were pleased with the continued growth in our own retail channel across all three of our luxury houses.

“This is a testament to the strength of our powerful iconic brands, as well as the success of our strategic initiatives.”

Capri expects revenue of around $1.27bn for the fourth quarter of FY23 and roughly $5.56bn for the full year.

For fiscal 2024 (FY24), the company expects total revenue of around $5.8bn and an operating margin of approximately 16.5%.

Idol added: “As we look to fiscal 2024, we expect Capri Holdings to generate mid-single-digit revenue and earnings growth.

“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 portfolio of luxury houses and the talented group of employees executing our strategic initiatives.”