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Capri Holdings Plummets 14% on Disappointing Earnings and Bleak Forecasts

Capri Holdings is facing a challenging period as it reported disappointing third-quarter fiscal 2025 results, with revenue declining 11.6% year-over-year to $1.3 billion. The company's major brands, including Michael Kors, Versace, and Jimmy Choo, all experienced significant revenue drops, with Michael Kors seeing a 12% decline, Versace falling 15%, and Jimmy Choo down 4%. The company attributed a net loss of $547 million to a non-cash impairment charge of $602 million. This marks a stark contrast to the net income of $105 million reported in the same period last year. The termination of the proposed merger with Tapestry has left Capri to address its internal challenges independently, with analysts noting the company's chronic inability to stabilize sales.

Capri's forward-looking guidance has further dampened investor sentiment, as the company projected fiscal 2025 revenue of about $4.4 billion and fiscal 2026 revenue of approximately $4.1 billion, both falling short of Street expectations. This guidance reflects anticipated revenue declines across all its brands for the next two fiscal years. Despite these challenges, Capri's CEO, John D. Idol, expressed optimism about the company's long-term potential, expecting performance improvements by fiscal 2026 and a return to growth in fiscal 2027.

Capri Holdings (CPRI) shares have plummeted 14.04% to $20.655 as of 1:53 pm on February 5th, down from the previous close of $24.03.