Revenue Performance: Revenue decreased 12% YoY due to global demand weakness; Versace, Jimmy Choo, and Michael Kors all reported declines of 15%, 4%, and 12%, respectively.
Profitability Afflictions: Gross profit margin was 64.4% (down 60 bps), with steep operational losses across all brands, reflecting higher operational expenses at 58.4% of revenue.
Balance Sheet Health: Cash at end of period was $356 million, against total debt of $1.48 billion, leading to a net debt position of approximately $1.12 billion. Inventory management showed a 13% decrease YoY to $892 million, indicating proactive steps to address oversupply.
Cash Flow Dynamics: Net cash provided by operating activities stood at $309 million, reflecting effective working capital management despite overall profit pressures. Free cash flow was down to $278 million, emphasizing the cash-generating capabilities amid a decline in profitability.