Dismal Performance in Capri's Fourth Quarter Unveiled

Capri Holdings Reports Challenging Fiscal 2025, Announces Strategies for Improvement

Capri Holdings, the luxury fashion group behind brands like Jimmy Choo, Michael Kors, and Versace, has reported a difficult fiscal year 2025, with a 14% drop in total revenue to $4.4 billion. The group also posted a net loss of $1.2 billion for the year.

John D. Idol, Capri's Chairman and CEO, acknowledged the challenges faced in 2025. Despite this, he expressed confidence in the strategies the company has in place to improve the performance at Michael Kors and Jimmy Choo.

The group's Q4 2025 results showed a 15.4% year-over-year decrease in revenue, totaling $1 billion. Michael Kors brand revenue for the quarter decreased 15.6% year over year to $694 million, while Jimmy Choo's revenue was down 2.9% to $133 million. Versace, which is set to be sold to Prada Group in the second half of 2025, reported a 21.2% year-over-year decrease in Q4 2025 revenue, totaling $208 million.

The Versace sale is expected to significantly reduce Capri Holdings' debt levels. With a current long-term debt of $1.47 billion, the sale is a strategic move to strengthen the company's financial position. The Versace brand will be classified as a discontinued operation beginning in fiscal 2026.

In terms of the future, the forecasted first quarter 2026 revenue for Capri Holdings is about $765 million to $780 million. Jimmy Choo's forecasted revenue for the same period is about $150 to $155 million, while Michael Kors is projected to be between about $615 million and $625 million. Capri Holdings' projected total revenue for fiscal 2026 is approximately $3.3 billion to $3.4 billion.

However, concerns about the brand identity and differentiation in the market persist. Analysts like Saunders have described Michael Kors as a "mediocre label with an expensive price point attached." Capri Holdings is working to address these issues and strengthen the brands under its umbrella.

As for the departure of the Capri Holdings CFO and the naming of a new leader, no such information is currently known based on available information. The search results do not provide any details about this event.

Despite the challenges faced in 2025, Capri Holdings remains optimistic about the future. With new strategies in place and the upcoming Versace sale, the company is looking to turn things around and return to profitability.