Companies

Capri Holdings posts wider net loss in the fourth quarter

May 29, 2025 United States

The US-based luxury group posted a wider net loss in the fourth quarter of fiscal year 2025 as it continues to execute initiatives aimed at returning to growth. The upcoming sale of Versace is expected to help reduce debt

“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”, commented John D. Idol, Chairman and Chief Executive Officer of Capri Holdings.

Fourth Quarter Results

In the fourth quarter of fiscal 2025, which ended on the 29^th of March, the company’s total revenue totalled 1.0 billion US dollars, a decrease of 15.4% (or 14.1% on a constant currency basis), as compared to the same period of the previous year.

During this period, Michael Kors contributed 694 million US dollars to the total revenue, down by 15.6% (or 14.4% on a constant currency basis), and Jimmy Choo contributed 133 million US dollars, down by 2.9% (or 1.5% on a constant currency basis), on a comparable basis to fourth quarter of fiscal 2024.

Versace, which is expected to be acquired by Prada in the second half of calendar 2025, contributed 208 million US dollars to the company’s revenue in the fourth quarter, a year-on-year decrease of 21.2% (or 19.7% on a constant currency basis).

In the fourth quarter of the last fiscal year, Capri Holdings posted an operating loss of 116 million US dollars, with a negative margin of 11.2%, improving from a 543 million US dollar loss and a negative 44.4% margin in the same period a year earlier. The adjusted operating loss was 33 million US dollars (negative margin of 3.2%), as compared to an adjusted income of 78 million US dollars (negative margin).

The US company reported a net loss of 645 million US dollars in the fourth quarter, wider than the loss of 472 million US dollars reported in the same quarter of fiscal year 2024. The adjusted net loss was 581 million US dollars, as compared to an adjusted net income of 50 million US dollars in the same period a year ago.

Capri Holdings generated 153 million US dollars in free cash flow in the fiscal year 2025. At the end of the year, net debt had fallen to 1.3 billion US dollars from 1.5 billion US dollars the previous year, reflecting improved cash generation and reduced leverage.

Fiscal Year 2026 Outlook

For the fiscal year 2026, the company expects a total revenue of approximately of between 3.3 and 3.4 billion US dollars, as compared to a revenue of 4.4 billion US dollars in the fiscal year 2025. Full year operating income is expected in the range of around 100 million US dollars, including the estimated tariff impact, as compared to a full year operating loss of 752 million US dollars.

“Looking ahead, we continue to expect trends to improve throughout 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 4 billion US dollars in revenue and Jimmy Choo to 800 million US dollars over time, while restoring operating margin to the double-digit range”, concluded John D. Idol.

Image Credits: ssilife.com.ph

United States Capri Companies Jimmy Choo Luxury Michael Kors Quarter Results Results Versace Year Results