(Reuters) - Capri Holdings Ltd (CPRI.N) reported a smaller-than-expected quarterly loss on Wednesday, helped by a recovery in demand for its Versace and Jimmy Choo brands in China and a surge in online shopping.
Capri said first-quarter sales at Versace and Jimmy Choo in Mainland China were roughly flat from a year earlier, joining European luxury goods makers LVMH (LVMH.PA) and Kering (PRTP.PA) in signaling a pick-up in demand in the country, where the effects of the COVID-19 pandemic were first felt.
The company warned that sales in Europe and North America would be slower to recover, with total revenue likely to be down 40% in the second quarter and 35% for the full year.
“We’re at the peak season of where tourists would be coming to London, Paris, Milan, Florence and Barcelona, which are all very important cities where we do huge volume,” Capri Chief Executive Officer John Idol said.
Total revenue fell 66.5% to $451 million in the first quarter, a smaller drop than what the company had projected in July, as online sales jumped 30%.
Excluding items, the company posted a loss of $1.04 per share, less than analysts’ expectation of a loss of $1.11 per share, according to IBES data from Refinitiv.