Capri Holdings, owner of the Versace, Jimmy Choo and Michael Kors brands, has reported total revenue of $1.26bn in the third quarter (Q3) of the fiscal year 2025 (FY25) – 11.6% down from $1.42bn in Q3 FY24.
The quarter ended 28 December 2024 saw Capri’s retail sales dip into low-double-digit percentages, while its wholesale revenue experienced a low-teen percentage decline. The luxury group’s performance was impacted across its entire brand portfolio.
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Capri Holdings chairman and chief executive officer John Idol stated: “Overall our business remained challenged during the quarter and we were disappointed with our results. We are re-evaluating our strategic initiatives to improve current sales trends.”
The company recorded a gross profit of $812m in Q3 FY25 with a gross margin of 64.4%, lower than the $928m and 65% gross margin reported in the same quarter of the previous year.
A marginal decline in gross profit margin by 60 basis points was primarily attributed to diminished full-price sell-throughs.
Operating loss for the quarter was $590m with an operating margin of (46.8%), in stark contrast to an income from operations of $122m and an operating margin of 8.5% during the same period of the previous year.
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By GlobalDataCapri experienced a significant net loss of $547m in Q3 FY25, compared with net income of $105m in Q3 FY24. Its loss per share was $4.61 against earnings per diluted share of $0.88.
On 28 December 2024, Capri’s inventory levels were reported at $892m – a 13% reduction from the previous year.
Versace’s third-quarter revenue stood at $193m in Q3 FY25 – a 15% reduction on both reported and constant currency bases compared to the year before.
The brand’s retail sales declined in the mid-teens percentage range, with wholesale revenue also falling by double digits.
Jimmy Choo’s revenue reached $159m over the quarter, a decrease of 4.2% on both reported and constant currency bases when juxtaposed with figures from the previous year.
Michael Kors, another pillar in Capri’s brand architecture, reported a revenue of $909m for the quarter. This figure represents a 12.1% decrease on a reported basis and an 11.7% decrease on a constant currency basis compared to the previous year.
Looking ahead to fiscal year 2025, Capri anticipates total revenue of $4.4bn, which includes an expected negative impact of $40m due to foreign currency fluctuations and forecasts adjusted operating income to be around $100m.
For its brands, Capri projects Versace to generate a total revenue of $810m, Jimmy Choo $600m and Michael Kors $3.0bn.
John Idol added: “Looking ahead, we expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond.
“Our portfolio of iconic fashion luxury brands, Versace, Jimmy Choo and Michael Kors, are globally recognised and resonate with consumers. I am optimistic about Capri’s future and remain confident in our long-term growth potential.”
In January 2025, Italian luxury fashion house Prada considered bidding for Versace.
