Capri: Key takeaways from Bernstein‘s Retail Forum

研报英文原文证据摘录

Capri: Key takeaways from Bernstein‘s Retail Forum

on in their view of the European business. As far as the impact to numbers, Mgmt emphasized that there are no changes

to guidance for Q1, however their view is currently “cautious” on how the market is faring overall.

• Optimistic about growth in Asia, especially China where Mgmt sees a big opportunity for growth and share gain,

supported by an emerging trend of consumers favoring accessible luxury brands over super-high luxury. Japan and Korea,

both historically strong markets for the company, remain solid and have more opportunity for growth as well.

MICHAEL KORS

• Still early innings of a long-term repositioning of the brand. Mgmt is 18 months into a multi-year effort to revitalize and

reposition the Kors brand — key initiatives included creating a better price-value offer to the customer, elevating the brand

through better storytelling and stronger marketing messages, enhancing the in-store experience through targeted store

renovations, rationalizing the SKU mix to focus on icons (e.g. Nolita, Hamilton, Laila) rather than lower-performing products,

improving the quality and fashion of the Outlet assortment, and improving “quality of sales” through less discounting, less

bulk wholesale sales, and less Off-price exposure. The repositioning is still in early innings according to CEO John Idol, with a

return to growth expected in the back half of this fiscal year but then a multi-year pathway of growth and share gain ahead.

• The full-price channel has already seen a nice recovery, both in DTC and wholesale. DTC traffic has improved,

renovated stores are outperforming meaningfully with opportunities to open more, and icon franchises are performing

strongly.