(Bloomberg) -- Capri Holdings Ltd., owner of the Michael Kors and Jimmy Choo luxury brands, said it expects that sales in its latest quarter fell about 70% as coronavirus lockdowns shut stores and sapped demand for handbags and high heels.
During the fiscal first quarter, the company’s stores were closed on average for 55% of the time, Capri said Wednesday in a statement. As a result of the sales decline, it anticipates a “significant” loss on a per-share basis for the period.
Luxury brands have been reeling from lockdowns that began in China and spread across much of the globe during the first half of the year. The likes of Louis Vuitton owner LVMH have said they’re seeing signs of recovery in key markets as stores reopen.
Capri said it’s moving to rein in capital expenditure and expenses. It reported adjusted earnings per share for the fourth quarter of 11 cents, down from 63 cents a year earlier and below analysts’ estimate of 15 cents. It said it’s unable to provide guidance for the current financial year.
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