Capri Holdings (CPRI) Company Report

Capri Holdings completed the sale of Versace for approximately $1.4 billion, which provides significant financial flexibility and allows the company to focus on its core Michael Kors and Jimmy Choo brands.
Jimmy Choo is considered core to the business and is not for sale, with expectations to grow from $600 million to approximately $800 million in sales over the next few years, achieving low to mid double-digit operating earnings.
Michael Kors is undergoing a strategic transformation, including re-engaging with its "jet set" image, modernizing marketing, resetting pricing architecture, and planning to renovate over 50% of its global store fleet over the next three years.
The company anticipates sales to turn positive in its next fiscal year (beginning April 1), with a significant inflection point expected around August of next year (Q3 fiscal). Long-term operating margin targets are low 20% for Michael Kors and low double-digit for Jimmy Choo. A $1 billion share repurchase program has been approved, set to begin in FY 2027.

1 day ago

Transcript

Capri Holdings Outlines Strategic Direction Post-Versace Sale and Future Growth

CPRI

M&A

Revenue Acceleration/Inflection

Share Buyback

Capri Holdings completed the sale of Versace for approximately $1.4 billion, which will provide significant financial flexibility, reduce debt, and allow for a greater focus on the Michael Kors and Jimmy Choo brands.
The company anticipates sales to turn positive in the next fiscal year (beginning April 1), with a notable inflection point expected by Q3 of that fiscal year for both Michael Kors and Jimmy Choo.
Management is confident in achieving low 20% operating margins for Michael Kors and low double-digit operating margins for Jimmy Choo in the future, supported by strategic initiatives like higher full-price sell-throughs, tariff mitigation, and expense leverage.
Capri Holdings plans to renovate over 50% of its Michael Kors store fleet globally over the next three years and has a $1 billion share repurchase program approved, slated to commence in FY27.
Long-term goals include returning Michael Kors to $4 billion in sales and growing Jimmy Choo to approximately $800 million over the next three to five years.

1 day ago

Transcript

Capri Holdings Completes Versace Sale, Outlines Strategic Focus and Financial Targets

CPRI

M&A

Revenue Acceleration/Inflection

Share Buyback

Capri Holdings completed the sale of Versace yesterday, generating approximately $1.4 billion, which will provide significant financial flexibility and reduce company debt.
The company will now focus on Michael Kors and Jimmy Choo, aiming to return Michael Kors to $4 billion in sales and grow Jimmy Choo from $600 million to approximately $800 million over the next few years.
Sales are expected to turn positive in the next fiscal year (starting April 1, 2026), with a significant inflection for Michael Kors by Q3 FY2027, supported by strategic initiatives like store renovations and product focus.
Long-term operating margin targets are low 20% for Michael Kors and low double-digit for Jimmy Choo, with overall company margin expansion anticipated next year.
Capital allocation priorities include investing in stores, digital, and IT, paying down debt, and a $1 billion share repurchase program approved to begin in FY 2027.

1 day ago

Transcript

Capri Holdings Completes Sale of Versace

CPRI

M&A

Debt Issuance

Guidance Update

Capri Holdings Limited completed the sale of its Versace business to Prada S.p.A. for $1.375 billion in cash on December 2, 2025.
The company plans to use the proceeds to repay the majority of its debt, which is expected to substantially strengthen its balance sheet and provide greater financial flexibility.
Following the sale, Capri Holdings will focus on its Michael Kors and Jimmy Choo brands, with a strategic goal to stabilize its business in fiscal 2026 and achieve a return to growth in fiscal 2027.

3 days ago

8-K

Prada Group Completes Versace Acquisition

CPRI

M&A

Management Change

New Projects/Investments

Prada Group has completed its €1.25 billion acquisition of Versace.
Versace, previously under Capri Holdings, had faced financial struggles, including a 25% drop in revenues over the last two years and an operating loss in its most recent fiscal year.
The acquisition was financed through a €1.5 billion facilities agreement and a €200 million bilateral term loan.
Lorenzo Bertelli will become Versace's executive chairman, and Dario Vitale has been appointed as the new creative director.
Versace is projected to contribute approximately 13% of Prada Group's pro-forma revenues.

3 days ago

Barron's

Capri Holdings Reports Q2 2026 Results, Reiterates Full-Year Guidance, and Authorizes Share Repurchase Program

CPRI

Earnings

Guidance Update

Share Buyback

For Q2 2026, Capri Holdings reported total company revenue of $856 million, a 2.5% decrease year-over-year, with a gross margin of 61%. Diluted earnings per share were negatively impacted by $0.20 due to a higher-than-anticipated effective tax rate.
The company reiterated its full-year fiscal 2026 guidance, expecting revenue between $3.375-$3.45 billion and diluted earnings per share between $1.20-$1.40. For Q3 2026, revenue is projected between $975 million-$1 billion and diluted earnings per share between $0.70-$0.80.
The sale of Versace is expected to close in Q3 2026, with proceeds intended to repay debt and strengthen the balance sheet. A new $1 billion share repurchase program has been authorized, anticipated to begin in fiscal 2027. Capri Holdings expects business stabilization in fiscal 2026 and a return to revenue and earnings growth in fiscal 2027.

Nov 4, 2025, 1:30 PM

Transcript

CPRI Details Forward-Looking Statements and Associated Risks

CPRI

Legal Proceedings

M&A

Demand Weakening

The presentation contains forward-looking statements that are prospective and subject to risks and uncertainties, which could cause actual results to differ materially from projections.
Key risks include macroeconomic pressures, trade restrictions, changes in fashion and consumer trends, increased competition, and risks associated with international markets and global sourcing activities.
Additional risks highlighted are cybersecurity threats, high consumer debt levels, recession, inflationary pressures, geopolitical conflicts, and the ability to execute growth strategies.
The company also notes risks related to the proposed sale of Versace and potential litigation concerning the terminated merger agreement with Tapestry, Inc..

Nov 4, 2025, 1:30 PM

Presentation

Capri Holdings Reports Q2 FY2026 Results and Announces Share Buyback

CPRI

Earnings

Guidance Update

Share Buyback

Capri Holdings reported second-quarter fiscal 2026 revenue of $856 million, surpassing analyst estimates, but posted an adjusted loss per share of $0.03, missing earnings expectations.
The company recorded a net loss of $34 million from continuing operations, an operating margin of -1.4%, and a gross profit of $522 million with a gross margin of 61.0%.
Capri projects fiscal 2026 revenue between $3.375 billion and $3.45 billion and expects Q3 revenue between $975 million and $1 billion with an operating margin of 7.0% to 8.0%.
A $1 billion share repurchase program is planned for fiscal 2027, to be financed by the anticipated sale of its Versace brand to Prada.

Nov 4, 2025, 1:29 PM

Morningstar

Capri Holdings Announces Second Quarter Fiscal 2026 Results and $1 Billion Share Repurchase Program

CPRI

Earnings

Share Buyback

Guidance Update

Capri Holdings Limited reported a 2.5% decrease in revenue to $856 million and an adjusted loss per share of $(0.03) for the second quarter of Fiscal 2026 ended September 27, 2025.
The company's Board of Directors authorized a new $1 billion share repurchase program, expected to begin implementation in fiscal 2027.
The sale of the Versace business is anticipated to close in the fiscal third quarter, with proceeds planned to repay the majority of the company's debt.
For Fiscal Year 2026, Capri Holdings expects total revenue of approximately $3.375 to $3.45 billion and diluted earnings per share of approximately $1.20 to $1.40.

Nov 4, 2025, 11:49 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Capri Holdings.

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