Capri Holdings Limited posted a steep revenue fall and a deepened net loss in its fourth quarter of its 2024-25 fiscal year, although results slightly beat market expectations. The US-based fashion house that owns Michael Kors, Jimmy Choo, and Versace continued to struggle with weak demand at all its brands.
The quarterly report also contains Versace results, which will be leaving the portfolio later this year. Italian luxury giant Prada is likely to wrap up its US $ 1.37 billion purchase of Versace in the second half of 2025, following a deal made in April.
For the 29th March quarter, Capri reported sales of US $ 1.03 billion, a decrease of 15.4 per cent from the prior year, or 14.1 per cent adjusted for exchange rate changes. Two of the group’s brands fell across the board: Michael Kors sales declined 15.6 per cent to US $ 694 million, Jimmy Choo fell 2.9 per cent to US $ 133 million, and Versace dropped 21.2 per cent to US $ 208 million.
In spite of the pressure on revenues, Capri was able to reduce its operating loss considerably—to US $ 116 million from US $ 543 million in the previous year—due to cost reductions. Net loss attributable to shareholders, though, expanded to US $ 645 million, a 37 per cent jump from the previous year, primarily because of increased tax charges. On an adjusted basis, the company reported a net loss of US $ 581 million, against an adjusted profit of US $ 50 million in the comparable period the previous year.
Total sales for the year amounted to US $ 4.44 billion, a 14.1 per cent, while net loss increased to US $ 1.18 billion—over five times the US $ 229 million loss it had incurred a year ago.
Looking forward, Capri offered preliminary direction for the 2025-26 fiscal year, not including the performance of Versace. The company is projecting revenue of US $ 3.3 billion to US $ 3.4 billion, operating income of around US $ 100 million, and diluted earnings per share of US $ 1.20 to US $ 1.40.
Chairman and CEO John Idol recognised the difficulties of the previous year but remained upbeat. He said that fiscal 2024-25 was a challenging year for Capri Holdings, but as they begin the new fiscal year, they are optimistic in their direction going forward. Idol pointed to the group’s continued turnaround initiatives and said there are early signs of progress, even with ongoing uncertainty over global trade tariffs. The company intends to remain on track with its strategic initiatives focused on long-term growth.
