US fashion group Capri Holdings Limited suffered significant revenue losses in the third quarter of fiscal year 2024/25. Negative one-off effects also resulted in a net loss of more than half a billion US dollars, according to an interim report published by the parent company of the Michael Kors, Versace, and Jimmy Choo brands on Wednesday.
“Overall, our business remained challenging this quarter, and we were disappointed with our results,” admitted Chairman and CEO John Idol in a statement. The group will now “review its strategic initiatives to improve current sales trends.” Idol also stated that he expects an improvement in results in the coming fiscal year. “This will create the foundation for renewed growth in 2027 and beyond.”
In the three months ending December 28, group revenue amounted to $1.26 billion (€1.21 billion), falling short of the prior-year quarter by 11.6 percent. Adjusted for currency fluctuations, revenues declined by 11.4 percent. The significant decline was attributable to losses across all of the group’s brands.
Michael Kors revenue decreased by 12.1 percent (currency-adjusted -11.7 percent) to $909 million. Versace experienced a decline of 15.0 percent (currency-adjusted -15.0 percent) to $193 million, while Jimmy Choo’s revenue fell by 4.2 percent (currency-adjusted -4.2 percent) to $159 million.
Extensive impairments pushed the company deep into the red. The operating loss amounted to $590 million, compared to an operating profit of $122 million in the same period of the previous year. The net loss attributable to shareholders totaled $547 million (€525 million). In the third quarter of the previous year, the group had posted a profit of $105 million. Adjusted for one-off effects, net income decreased by 62 percent to $54 million.
The future of the group remains uncertain. After the long-planned merger with competitor Tapestry Inc. was blocked by a US court for antitrust reasons and subsequently terminated by both companies, Capri is reportedly considering the sale of Versace and Jimmy Choo to focus entirely on its core brand, Michael Kors. According to media reports, among the numerous interested parties in Versace are the Italian fashion group Prada SpA and the investment company of former Gucci CEO Marco Bizzarri.
Michael Kors
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