Companies

Capri Holdings reports another weak quarter

Feb 12, 2025 United States

The owner of Michael Kors, Versace and Jimmy Choo has reported another disappointing quaterly performance, with third quarter revenue down by 11.6% or 11.4% on a constant currency basis on the same period of last year

“Overall, our business remained challenged during the quarter, and we were disappointed with our results. We are reevaluating our strategic initiatives to improve current sales trends. Looking ahead, we expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond”, commented John D. Idol, the company’s Chairman and Chief Executive Officer.

Third Quarter Results

In the third quarter of fiscal 2025, which ended on the 28^thof December, Capri’s total revenue amounted to 1.26 billion US dollars, a decrease of 11.6%, or 11.4% on a constant currency basis, as compared to the same period of last fiscal year. The company said retail sales declined by low-double digits, while wholesale revenue declined by low-tens.

Versace contributed 193 million US dollars to the total revenue, down by 15.0% on a reported and constant currency basis, on a comparable basis to the third quarter of 2024. In line with the previous quarter, the decline was more pronounced in the Americas (down by 21%), followed by the EMEA (down by 13%) and Asia (down by 11%).

Michael Kors added 909 million US dollars, down by 12.1% on a reported basis and 11.7% on a constant currency basis, on a comparable basis to the third quarter of last year. The fall here was more pronounced in Asia (down by 27%), followed by the EMEA (down by 13%) and the Americas (down by 10%).

Jimmi Choo contributed 159 million US dollars to the total revenue, down by 4.2% on both a reported and constant currency basis, as compared to the same period of the prior year. While the shoe brand’s revenue grew in the EMEA (up by 9%), it decreased in the Americas (down by 10%) and in Asia (down by 17%).

In the third quarter of the current fiscal year, Capri reported a loss from operations of 590 million US dollars, with an operating margin of 46.8%, as compared to an income from operations of 122 million US dollars and an operating margin of 8.5% in the same quarter of the previous fiscal year.

Adjusted income from operations also dropped to 76 million US dollars from 172 million US dollars and the adjusted operating gross margin contracted to 6.0% from 12.1%. This decline is mainly attributed to expense deleverage.

In the three months to the 28^th of December, the company’s net loss was 547 million US dollars, as compared to a net income of 105 million US dollars, and adjusted net income was 54 million US dollars, as compared to an adjusted net income of 142 million US dollars in the third quarter of fiscal 2024.

Full Year Outlook

For fiscal 2025, Capri Holdings expects total revenue of 4.4 billion US dollars, including a negative foreign exchange impact of approximately 40 million US dollars and adjusted operating income of approximately 100 million US dollars.

Image Credits: theimpression.com

United States Capri Jimmy Choo Luxury Michael Kors Quarter Results Results Versace