Capri Holdings Reports $797 Million Revenue, Net Income Increases to $56 Million

Capri Holdings Limited reported a total revenue of $797 million for the three months ended June 28, 2025, a decrease of 6% compared to $848 million in the same period last year. The decline was primarily driven by a slowdown in demand for luxury goods, particularly in North America and Asia, as well as strategic initiatives at the Michael Kors brand that did not yield expected results. The company's net income from continuing operations was $56 million, a significant increase from $5 million in the prior year, reflecting improved operational efficiency and cost management.

The company's gross profit for the quarter was $502 million, down from $535 million a year earlier, with a gross profit margin of 63.0%, slightly lower than the previous year's 63.1%. Selling, general, and administrative expenses also decreased to $455 million from $491 million, attributed to cost-saving measures that reduced personnel and retail store-related costs. The income from operations rose to $16 million, compared to $11 million in the prior year, indicating a positive trend in operational performance despite lower revenues.

Capri Holdings is undergoing significant strategic changes, including the planned sale of its Versace business to Prada for $1.375 billion, which has been classified as discontinued operations. This transaction is expected to close in the second half of 2025, subject to customary closing conditions. The company has also terminated its merger agreement with Tapestry, which was initially intended to create a larger luxury group but faced regulatory challenges. The termination resulted in a reimbursement of approximately $45 million from Tapestry for certain expenses.

Operationally, Capri Holdings has seen a reduction in its retail footprint, closing 15 stores during the quarter, compared to 11 closures in the same period last year. The total number of retail stores as of June 28, 2025, was 912, down from 991 a year earlier. The company continues to focus on enhancing its e-commerce capabilities and optimizing its store network to adapt to changing consumer behaviors. The total employee headcount has also been adjusted in line with these operational changes.

Looking ahead, Capri Holdings anticipates continued challenges from macroeconomic pressures, including inflation and fluctuating consumer demand. The company is committed to executing its growth strategies while managing costs effectively. The outlook remains cautious, with expectations of ongoing volatility in the luxury goods market, but the company is optimistic about its ability to navigate these challenges and leverage its brand portfolio for future growth.