Gross profit was $956 million in the fourth quarter and gross margin was 64.1 per cent, compared to $737 million and 61.6 per cent in the prior year. Adjusted gross profit was $951 million and adjusted gross margin was 63.7 per cent, compared to $760 million and 63.5 per cent in the prior year, the company said in a press release.

"Looking back on fiscal 2022, I am proud of the progress we made across all our luxury houses. Revenue and earnings results significantly exceeded our original expectations. Capri Holdings achieved the highest revenue, gross margin and earnings per share in the company’s history. Additionally, we generated strong free cash flow and returned $650 million to shareholders in fiscal 2022. Our ability to deliver record results while navigating the challenges of an unprecedented global pandemic is a testament to the strength of our brands and the success of our strategic growth initiatives. Most importantly, we would not have been able to achieve these results if not for the hard work, dedication and resiliency of our teams across the globe,” John D Idol, the company’s chairman and chief executive officer, said.

"Looking forward to fiscal 2023, we expect to achieve another year of record revenue and earnings per share. Longer term we are confident in our ability to resume double digit revenue increases as we move beyond the impact of current macro headwinds. The power of Versace, Jimmy Choo and Michael Kors as well as the proven resilience of the luxury market reinforce our optimism for the future and our ability to achieve $7 billion in revenue and a 20 per cent operating margin over time,” Idol continued.

For fiscal 2023, the company expects total revenue of approximately $5.95 billion, increasing approximately 5 per cent versus prior year on a reported basis and approximately 10 per cent in constant currency. Gross margin is expected to be flat to fiscal year 2022, reflecting benefits from strategic initiatives offset by higher transportation and input costs.

Fibre2Fashion News Desk (RR)