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Dec 28, 2024

Capri Q3 2025 Earnings Report

Capri's business remained challenged, with revenue decreasing by 11.6% and an adjusted operating margin of 6.0%. The company is reevaluating strategic initiatives to improve sales trends and expects performance to improve throughout fiscal year 2026.

Key Takeaways

Capri Holdings reported a challenging third quarter with revenue declining by 11.6% to $1.26 billion. The company experienced a net loss of $547 million, or $(4.61) per share, but adjusted earnings per share were $0.45. Strategic initiatives are being reevaluated to improve sales trends, with expectations of improved performance in fiscal year 2026 and a return to growth in fiscal year 2027.

Total revenue decreased by 11.6% to $1.26 billion.

Adjusted earnings per share were $0.45.

Net loss was $547 million, or $(4.61) per share, driven by a non-cash impairment charge.

The company is reevaluating strategic initiatives to improve sales trends.

Total Revenue
$1.26B
Previous year: $1.43B
-11.6%
EPS
$0.45
Previous year: $1.2
-62.5%
Gross Profit
$812M
Previous year: $928M
-12.5%
Cash and Equivalents
$356M
Previous year: $249M
+43.0%
Free Cash Flow
$278M
Previous year: $313M
-11.2%
Total Assets
$5.91B
Previous year: $7.62B
-22.5%

Capri

Capri

Capri Revenue by Segment

Capri Revenue by Geographic Location

Forward Guidance

Capri Holdings provided its outlook for fiscal years 2025 and 2026 on an adjusted, non-GAAP basis, but noted that financial results could differ materially due to external events.

Positive Outlook

  • Total revenue of approximately $4.4 billion for fiscal year 2025.
  • Adjusted operating income of approximately $100 million for fiscal year 2025.
  • Ending inventory expected to be below prior year for fiscal year 2025.
  • Versace total revenue of approximately $810 million for fiscal year 2025.
  • Michael Kors total revenue of approximately $3.0 billion for fiscal year 2025.

Challenges Ahead

  • Total revenue of approximately $4.1 billion for fiscal year 2026.
  • Adjusted operating income of approximately $150 million for fiscal year 2026.
  • Versace total revenue of approximately $800 million for fiscal year 2026.
  • Jimmy Choo total revenue of approximately $550 million for fiscal year 2026.
  • Michael Kors total revenue of approximately $2.75 billion for fiscal year 2026.

Revenue & Expenses

Visualization of income flow from segment revenue to net income