Capri Holdings Reports $1.025 Billion Revenue, Net Income Recovery Following Versace Sale

Capri Holdings Limited reported a total revenue of $1.025 billion for the three months ended December 27, 2025, a decrease of 4% compared to $1.068 billion for the same period in the previous year. The decline was attributed to a 5.6% drop in revenue from the Michael Kors segment, which generated $858 million, while the Jimmy Choo segment saw a 5% increase, reaching $167 million. For the nine months ending December 27, 2025, total revenue was $2.678 billion, down 4.2% from $2.794 billion in the prior year. The company reported a net income of $116 million for the quarter, a significant recovery from a loss of $546 million in the same quarter last year, largely due to the sale of its Versace business.

The financial performance reflects a strategic shift following the divestiture of the Versace brand, which was completed on December 2, 2025, for gross cash proceeds of $1.395 billion. This sale allowed Capri to classify the Versace operations as discontinued, impacting the overall financial results. The company also noted a significant reduction in long-term debt, which fell to $224 million from $1.466 billion, primarily due to the repayment of debt using proceeds from the Versace sale.

Operationally, Capri Holdings has seen a decrease in its retail footprint, with the number of Michael Kors full-price retail stores declining to 368 from 435 year-over-year, while Jimmy Choo's stores decreased from 168 to 157. The company has focused on cost-saving initiatives, which contributed to a reduction in selling, general, and administrative expenses, which totaled $535 million for the quarter, down slightly from $537 million a year prior. The gross profit margin also decreased to 60.8% from 63.1%, primarily due to increased U.S. import tariffs affecting the Michael Kors segment.

Looking ahead, Capri Holdings anticipates continued challenges from macroeconomic conditions, including inflation and geopolitical factors that may impact consumer spending. The company is also navigating the complexities of foreign currency fluctuations and potential disruptions in its supply chain. Despite these challenges, Capri Holdings remains committed to executing its growth strategies and optimizing its operational efficiency, with plans to invest in store renovations and digital enhancements in the coming fiscal year. The company has also initiated a new share repurchase program, allowing for the buyback of up to $1 billion of its shares, which is expected to commence in Fiscal 2027.