Capri posts smaller-than-expected loss boosted by online demand

(C) Reuters. Michael Kors logo is seen in a shop in downtown Lisbon

(Reuters) – Michael Kors-owner Capri Holdings Ltd (N:CPRI) reported a smaller-than-expected quarterly loss on Wednesday, helped by higher online orders from consumers stuck indoors due the COVID-19 pandemic.

The company, which also owns Versace and Jimmy Choo brands, still reported a 66.5% fall in overall revenue as the health crisis forced store closures around the world and hammered demand for high-end handbags, apparel and accessories.

Despite a steep fall in revenue, Chief Executive Officer John Idol said sales and margin trends across the three brands were ahead of the company’s initial expectations, helped by e-commerce growth.

The company reported a net attributable loss of $180 million, or $1.21 per share, in the first quarter ended June 27, compared with a profit of $45 million, or 30 cents per share, a year earlier.

Excluding items, the company lost $1.04 per share, less than analysts’ expectation of a loss of $1.11 per share.

Total revenue fell to $451 million, but beat analysts’ average estimate of $424.5 million, according to IBES data from Refinitiv.