Latest news with #MichaelKors
Fashion Network
3 hours ago
- Business
- Fashion Network
Capri signals selective price hikes on Michael Kors handbags to counter tariff hit
Capri has narrowed its focus on the Michael Kors fashion brand, while jettisoning the underperforming Versace label to Italian rival Prada following a failed attempt to merge with rival and Coach parent Tapestry last year. At its largest Michael Kors brand, it aims to improve the retail stores through renovation and stabilize its wholesale revenue channel. Capri, which sources about 5% of its U.S. products from China, is also relying on diversifying its supply chain and working with its suppliers to absorb tariff-related costs over this year. However, a weakening consumer spending backdrop has led to cautious spending on high-end goods as shoppers worry over having to pay more in the coming months for all kinds of products, as tariff-related uncertainty weighs on global trade. "We continue to see meaningful work that needs to be done, particularly at its largest brand, Michael Kors, which has recorded 10 consecutive quarters of revenue declines," said Dana Telsey of Telsey Advisory Group. Capri expects total annual revenue in the range of $3.3 billion to $3.4 billion. The forecast, which excludes sales from the Versace brand, does not account for changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said. For the quarter ended March 29, revenue dropped 15.4% to $1.04 billion, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by LSEG. It posted a loss of 30 cents per share on an adjusted basis, compared to estimates of a loss of 15 cents.
Fashion Network
3 hours ago
- Business
- Fashion Network
Capri signals selective price hikes on Michael Kors handbags to counter tariff hit
Capri has narrowed its focus on the Michael Kors fashion brand, while jettisoning the underperforming Versace label to Italian rival Prada following a failed attempt to merge with rival and Coach parent Tapestry last year. At its largest Michael Kors brand, it aims to improve the retail stores through renovation and stabilize its wholesale revenue channel. Capri, which sources about 5% of its U.S. products from China, is also relying on diversifying its supply chain and working with its suppliers to absorb tariff-related costs over this year. However, a weakening consumer spending backdrop has led to cautious spending on high-end goods as shoppers worry over having to pay more in the coming months for all kinds of products, as tariff-related uncertainty weighs on global trade. "We continue to see meaningful work that needs to be done, particularly at its largest brand, Michael Kors, which has recorded 10 consecutive quarters of revenue declines," said Dana Telsey of Telsey Advisory Group. Capri expects total annual revenue in the range of $3.3 billion to $3.4 billion. The forecast, which excludes sales from the Versace brand, does not account for changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said. For the quarter ended March 29, revenue dropped 15.4% to $1.04 billion, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by LSEG. It posted a loss of 30 cents per share on an adjusted basis, compared to estimates of a loss of 15 cents.
The Star
4 hours ago
- Business
- The Star
U.S. stocks drop ahead of Nvidia earnings report
NEW YORK, May 28 (Xinhua) -- U.S. stocks ended lower on Wednesday, as investors awaited Nvidia's highly anticipated earnings report, which came after market close. The Dow Jones Industrial Average fell by 244.95 points, or 0.58 percent, to 42,098.7. The S&P 500 sank 32.99 points, or 0.56 percent, to 5,888.55. The Nasdaq Composite Index shed 98.23 points, or 0.51 percent, to 19,100.94. All of the 11 primary S&P 500 sectors ended in red, with utilities and materials leading the laggards by dropping 1.44 percent and 1.27 percent, respectively. Real estate posted the weakest decline, down 0.01 percent. The Federal Reserve's May policy meeting minutes, released Wednesday, reflected continued uncertainty among policymakers about the trajectory of fiscal policy and trade tensions. While officials agreed to keep interest rates steady, they noted that economic growth remained "solid" and the labor market "broadly balanced," although risks of softening persisted. "In considering the outlook for monetary policy, participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the (Federal Open Market) Committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity," the summary said. Nvidia, currently the world's second-largest company by market cap, remained at the center of attention. Notably, Nvidia's stock has declined after its last three earnings reports, despite consistently beating expectations. Elsewhere in tech, Broadcom climbed 1.6 percent, Apple and Meta saw modest gains, while Microsoft, Amazon and Alphabet dipped. Tesla shares hit their highest point since early February during Tuesday's session, before it dropped 1.65 Wednesday. In the retail sector, Abercrombie & Fitch surged 14.69 percent on strong results. Macy's ended the day down 0.33 percent after a volatile start to the session, after it delivered solid performance, but lowered its full-year profit guidance on Wednesday, pointing to the growing financial strain from rising tariffs. Capri Holdings, owner of Michael Kors and Jimmy Choo, gained 2.94 percent. On the bond front, U.S. Treasury yields edged higher, with the 10-year yield reaching 4.483 percent, up from 4.449 percent on Tuesday. Last week, it peaked at 4.63 percent, the highest in over three months, driven by market worries over ballooning federal deficits as the GOP's tax-and-spending bill advanced in Congress. Tuesday's gains marked a sharp rebound for Wall Street after a recent four-day losing streak. The S&P 500 is now up 0.34 percent year to date, recovering from being down 15 percent just last month, as market sentiment improves amid trade de-escalation and strong consumer spending.
Fashion Network
5 hours ago
- Business
- Fashion Network
Capri signals selective price hikes on Michael Kors handbags to counter tariff hit
Capri Holdings said on Wednesday that it might selectively raise prices on leather handbags to cushion a hit from tariffs as the Michael Kors owner tries to revive sales at its core brand by undertaking an ambitious turnaround plan. See catwalk Tariff-related uncertainty has prompted a number of companies including Walmart, Nike and Ralph Lauren to consider price hikes in the coming months as they scramble to counter higher costs of trade. Shares of the Jimmy Choo parent jumped 6% after the company topped fourth-quarter sales expectations and said that its net debt would be much lower following the completion of the Versace brand sale, which was expected to close this fall. Capri has narrowed its focus on the Michael Kors fashion brand, while jettisoning the underperforming Versace label to Italian rival Prada following a failed attempt to merge with rival and Coach parent Tapestry last year. At its largest Michael Kors brand, it aims to improve the retail stores through renovation and stabilize its wholesale revenue channel. Capri, which sources about 5% of its U.S. products from China, is also relying on diversifying its supply chain and working with its suppliers to absorb tariff-related costs over this year. However, a weakening consumer spending backdrop has led to cautious spending on high-end goods as shoppers worry over having to pay more in the coming months for all kinds of products, as tariff-related uncertainty weighs on global trade. "We continue to see meaningful work that needs to be done, particularly at its largest brand, Michael Kors, which has recorded 10 consecutive quarters of revenue declines," said Dana Telsey of Telsey Advisory Group. Capri expects total annual revenue in the range of $3.3 billion to $3.4 billion. The forecast, which excludes sales from the Versace brand, does not account for changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said. For the quarter ended March 29, revenue dropped 15.4% to $1.04 billion, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by LSEG. It posted a loss of 30 cents per share on an adjusted basis, compared to estimates of a loss of 15 cents.
Fashion Network
5 hours ago
- Business
- Fashion Network
Capri signals selective price hikes on Michael Kors handbags to counter tariff hit
Capri Holdings said on Wednesday that it might selectively raise prices on leather handbags to cushion a hit from tariffs as the Michael Kors owner tries to revive sales at its core brand by undertaking an ambitious turnaround plan. See catwalk Tariff-related uncertainty has prompted a number of companies including Walmart, Nike and Ralph Lauren to consider price hikes in the coming months as they scramble to counter higher costs of trade. Shares of the Jimmy Choo parent jumped 6% after the company topped fourth-quarter sales expectations and said that its net debt would be much lower following the completion of the Versace brand sale, which was expected to close this fall. Capri has narrowed its focus on the Michael Kors fashion brand, while jettisoning the underperforming Versace label to Italian rival Prada following a failed attempt to merge with rival and Coach parent Tapestry last year. At its largest Michael Kors brand, it aims to improve the retail stores through renovation and stabilize its wholesale revenue channel. Capri, which sources about 5% of its U.S. products from China, is also relying on diversifying its supply chain and working with its suppliers to absorb tariff-related costs over this year. However, a weakening consumer spending backdrop has led to cautious spending on high-end goods as shoppers worry over having to pay more in the coming months for all kinds of products, as tariff-related uncertainty weighs on global trade. "We continue to see meaningful work that needs to be done, particularly at its largest brand, Michael Kors, which has recorded 10 consecutive quarters of revenue declines," said Dana Telsey of Telsey Advisory Group. Capri expects total annual revenue in the range of $3.3 billion to $3.4 billion. The forecast, which excludes sales from the Versace brand, does not account for changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said. For the quarter ended March 29, revenue dropped 15.4% to $1.04 billion, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by LSEG. It posted a loss of 30 cents per share on an adjusted basis, compared to estimates of a loss of 15 cents.
