Capri Holdings, which owns luxury brands such as Versace, Michael Kors and Jimmy Choo, has disclosed total revenue of $1.04bn in the fourth quarter (Q4) of fiscal 2025 (FY25) – a decrease of 15.4% from the same quarter of the previous year.
Michael Kors experienced a 15.6% revenue drop over the quarter, while Jimmy Choo and Versace posted revenue drops of 2.9% and 21.2% respectively.
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Gross profit for Capri was reported at $631m, a reduction from the $767m recorded in the same period of the previous year.
Michael Kors contributed $407m, Jimmy Choo $88m and Versace $136m.
The company’s gross margin stood at 61% for Q4 FY25, compared to 62.7% in the same period of 2024.
The operating loss for the company improved to $116m in the fourth quarter from a loss of $543m in the corresponding quarter of the previous year.
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By GlobalDataThe operating margin was reported at (11.2)%, an improvement over 2024’s (44.4)%.
Net loss of Capri widened to $645m in Q4 FY25 from a net loss of $472m in Q4 FY24. Its loss per share also increased to $5.44 from a loss per share of $4.03 in the previous year.
Capri Holdings chairman and chief executive officer John Idol stated: “Fiscal 2025 was a challenging year for Capri Holdings, but we are optimistic about our path forward as we enter fiscal 2026. While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The company is still in the early stages of its turnaround and we are seeing positive indicators that our strategies are beginning to work.”
In April 2025, Capri entered an agreement to divest Versace to Prada in a deal valued at $1.38bn.
The deal is anticipated to be finalised in the second half of the calendar year 2025.
Looking ahead to the fiscal year 2026, Capri forecasts total revenue between $3.3bn and $3.4bn and operating income of $100m, inclusive of estimated tariff impacts.
The company’s projected earnings per diluted share are estimated to be between $1.20 and $1.40 for fiscal 2026.
The guidance considers various outcomes due to uncertainties around tariffs and foreign currency exchange rates.
“Looking ahead, we continue to expect trends to improve throughout the fiscal year 2026, positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4bn in revenue and Jimmy Choo to $800m over time, while restoring operating margin to the double-digit range,” Idol concluded.
GlobalData retail managing director and retail analyst Neil Saunders commented in a LinkedIn post that Capri had appeared to be in a worsening position even before the imposition of tariffs.
