Capri Holdings reduces quarterly loss despite revenue decline

US fashion group Capri Holdings Limited also suffered a decline in sales in the fourth quarter of the 2025/26 financial year. The company made significant progress in its earnings thanks to extensive reforms. Management is now also forecasting sales growth for the current year.

In the final quarter of the past financial year, which ended on March 28, the group's revenue from continuing operations amounted to 796 million dollars. This excludes contributions from the fashion house Versace, which has since been sold to the Prada Group. This represented a decrease of 3.7 percent compared to the same period last year. Adjusted for currency fluctuations, revenue shrank by 7.0 percent.

Revenue for the core brand Michael Kors fell by 5.5 percent (currency-adjusted -8.4 percent) to 656 million dollars. In contrast, revenue for the shoe label Jimmy Choo increased by 5.3 percent to 140 million euros. On a currency-adjusted basis, it remained roughly constant.

Group makes further progress on earnings

The gross margin, which was 59.9 percent in the prior-year quarter, increased to 64.8 percent, partly due to the expected refund of improper customs duties. This increase, along with cost savings, helped reduce the operating loss from continuing operations from 57 million to 27 million dollars.

The reported net loss attributable to shareholders was reduced to four million dollars, compared to 645 million dollars in the prior-year quarter. The continuing operations generated a profit of one million dollars, after suffering a net loss of 579 million dollars in the same period last year.

For the full 2025/26 financial year, the group's revenue from continuing operations fell by 4.1 percent (currency-adjusted -6.2 percent) to 3.47 billion dollars. Net profit attributable to shareholders was 137 million dollars, after the group recorded a corresponding loss of 1.18 billion dollars in the previous year.

Management forecasts growth in revenue and earnings for current financial year

Chairman and CEO John Idol highlighted the “encouraging progress” the group has made in implementing its strategic initiatives over the past year. Following the sale of Versace, the strategy focuses on strengthening the two remaining brands. According to Idol, “targeted measures” have been initiated to “strengthen product innovation, brand appeal and customer engagement”. He added that the group is now seeing “clear signs that these efforts are resonating with consumers”. Due to the improving trends at both brands, management has “confidence in a return to revenue and profit growth,” Idol emphasised.

Accordingly, for the current 2026/27 financial year, the group expects revenue to grow to approximately 3.25 billion dollars. Adjusted net profit per share is expected to increase by around 40 percent to approximately 2.15 dollars.

This article was translated to English using an AI tool.

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