Capri Holdings posts quarterly loss as sales decline across luxury brands

Shares in Capri Holdings, which owns Versace, Michael Kors and Jimmy Choo, have dropped after it gave guidance below Wall Street expectations.

According to its third quarter results posted yesterday, total revenue of $1.26 billion (£1 billion) decreased 11.6% on a reported basis and 11.4% in constant currency. Net loss for the quarter was $547 million (£440 million).

Share prices fell 2.3% on Wall Street in pre-market trading. Over the twelve months until close on Tuesday, the stock declined by around half.

The company said its turnaround will take longer than the coming fiscal year, with Chief Executive Officer John Idol stating: "We expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond."

Total company retail sales dropped in the low double digits whilst wholesale revenue declined low-teens.

Gross profit was $182 million (£146.5 million) and gross margin was 64.4%, this is a noticeable decline from $928 million (£747 million) and 65% in the year prior.

Versace revenue dropped 15% from $193 million (£155.4 million) on both a reported basis and constant currency basis compared to the year prior, with an operating loss of $21 million (£16.9 million) and an operating margin of 10.9% compared with $14 million (£11.3 million) and 6.2% the year prior.

Jimmy Choo's $159 million (£128 million) revenue decreased 4.2% on both a reported basis and constant currency basis compared to the previous year. Its operating loss was $6 million (£4.8 million) and operating margin was 3.8%, compared with $4 million and 2.4% the year prior.

Michael Kors' $909 million (£731.7 million) revenue decreased 12.1% on a reported basis and 11.7% on a constant currency basis compared to the previous year. The company's operating income was $147 million (£118.4 million) and operating margin was 16.2%, compared to $219 million (£176.3 million) and 21.2% the year prior.

In December, the company floated the sale of both Versace and Jimmy Choo.

Looking towards FY25, Capri Holdings expects total revenue of $4.4 billion (£3.5 billion), including an approximate $40 million (£32.2 million) due to negative impact from foreign currency.

Idol concluded: "Our portfolio of iconic fashion luxury brands, Versace, Jimmy Choo and Michael Kors, are globally recognised and resonate with consumers. I am optimistic about Capri's future and remain confident in our long-term growth potential."