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Mar 29, 2025
Capri Q4 2025 Earnings Report
Capri reported a challenging Q4 2025 with double-digit revenue declines and a significant net loss impacted by a non-cash tax charge.
Key Takeaways
Capri Holdings experienced a difficult quarter, with a sharp decline in revenue and continued net losses across all major brands. A $545M non-cash tax valuation allowance heavily impacted net income. The company is moving forward with the sale of Versace to Prada and refocusing on Michael Kors and Jimmy Choo.
Total revenue declined 15.4% YoY to $1.035 billion.
GAAP EPS came in at $(5.44), heavily impacted by a $545M tax valuation allowance.
Michael Kors remained the largest segment but saw revenue fall 15.6%.
Capri entered a definitive agreement to sell Versace to Prada for $1.375 billion.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Capri expects stabilization in FY26 with the Versace sale pending and a focus on core brands, but challenges from tariffs, FX, and macro uncertainty persist.
Positive Outlook
- Guidance excludes Versace, which will be classified as discontinued operations.
- Expected revenue of $3.3B to $3.4B for FY26.
- Diluted EPS projected between $1.20 and $1.40.
- Michael Kors to generate $2.75B–$2.85B in revenue.
- Capex planned at $110M for FY26.
Challenges Ahead
- Macroeconomic and tariff uncertainty may affect consumer spending.
- High inventory and cost pressures remain.
- FX volatility could impact results.
- Jimmy Choo expected to remain at break-even margin.
- Full recovery expected only by FY27.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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