Capri Holdings, the parent company of luxury brands Versace, Jimmy Choo, and Michael Kors, has reported a challenging third quarter. Total revenue dropped to $1.26 billion, marking an 11.6% decline compared to the previous year. The company also posted a net loss of $547 million, reflecting ongoing struggles in the luxury retail sector.
Following the earnings report, shares fell 2.3% in pre-market trading on Wall Street. Over the past year, the stock has lost approximately half its value, signaling investor concerns about the company's performance.
All three major brands under Capri Holdings experienced revenue declines:
Gross profit for the company also declined, reaching $182 million compared to $928 million in the same period last year. Gross margin slightly decreased to 64.4% from 65%.
CEO John Idol acknowledged the challenges, stating that the company's turnaround will extend beyond the next fiscal year. He projected improved performance by fiscal year 2026, with a return to growth expected in 2027 and beyond. For fiscal year 2025, Capri Holdings anticipates total revenue of $4.4 billion, though foreign currency impacts may reduce this by approximately $40 million.
Despite the current setbacks, Idol expressed confidence in the company's iconic brands and their global appeal. "Our portfolio of luxury brands resonates with consumers worldwide," he said. "I remain optimistic about Capri's future and our long-term growth potential."
