Capri Holdings (CPRI) came out with a quarterly loss of $4.90 per share versus the Zacks Consensus Estimate of a loss of $0.16. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2,962.50%. A quarter ago, it was expected that this luxury retailer would post earnings of $0.63 per share when it actually produced earnings of $0.45, delivering a surprise of -28.57%.Over the last four quarters, the ...

4Q Fiscal Year 2025 Earnings Presentation May 28, 2025 PENDING VERSACE SALE As previously announced, Capri Holdings entered into a definitive agreement to sell Versace to Prada Group for $1.375B in cash subject to certain adjustments. The transaction is expected to close in the second half of calendar 2025, subject to customary closing conditions including regulatory approvals. Capri plans to use the proceeds to: Beginning in fiscal 2026 Versace will be classified as a discontinued operation. • Invest in fu ...

Financial Performance - Total revenue for Q4 Fiscal 2025 was $1.0 billion, a decrease of 15.4% year-over-year, and a 14.1% decrease on a constant currency basis[10] - Gross profit was $631 million with a gross margin of 61.0%, down from $767 million and 62.7% in the prior year[10] - Net loss was $645 million, or $(5.44) per diluted share, compared to a net loss of $472 million, or $(4.03) per diluted share, in the prior year[10] - Total revenue for the three months ended March 29, 2025, was $1,035 million, a decrease of 15.4% compared to $1,223 million for the same period in 2024[30] - Gross profit for the three months ended March 29, 2025, was $631 million, down from $767 million in the prior year, representing a decline of 17.7%[30] - Net loss attributable to Capri for the three months ended March 29, 2025, was $645 million, compared to a net loss of $472 million for the same period in 2024, indicating a 36.6% increase in losses[30] - For the fiscal year ended March 29, 2025, total revenue was $4,442 million, down 14.1% from $5,170 million in the previous fiscal year[36] - The diluted net loss per ordinary share for the fiscal year ended March 29, 2025, was $10.00, compared to a diluted net income of $5.89 per share in the previous year[41] Revenue by Brand - Michael Kors revenue decreased by 15.6% to $694 million, while Jimmy Choo revenue decreased by 2.9% to $133 million[10] - Michael Kors revenue for the three months ended March 29, 2025, was $694 million, a decrease of 15.6% from $822 million in the same period last year[32] - Versace revenue for the three months ended March 29, 2025, was $208 million, down 21.2% from $264 million in the prior year[32] - Versace's revenue for the fiscal year ended March 29, 2025, was $821 million, a decrease of 20.3% from $1,030 million in the previous year[36] - Jimmy Choo revenue for the three months ended March 29, 2025, was $133 million, a slight decrease of 2.9% compared to $137 million in the same period in 2024[32] Future Outlook - Capri Holdings expects total revenue for Fiscal 2026 to be approximately $3.3 to $3.4 billion, with an operating income around $100 million[16] - The company anticipates diluted earnings per share for Fiscal 2026 to be approximately $1.20 to $1.40[16] - The company aims to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range[4] Cash Flow and Assets - Cash flow from operating activities for Fiscal 2025 was $281 million, resulting in free cash flow of $153 million after capital expenditures of $128 million[10] - Net inventory as of March 29, 2025, was $869 million, reflecting a 1% increase compared to the prior year[10] - Total current assets decreased to $1,521 million as of March 29, 2025, from $1,608 million as of March 30, 2024, reflecting a decline of 5.4%[28] - Total liabilities decreased to $4,841 million as of March 29, 2025, from $5,089 million as of March 30, 2024, a reduction of 4.9%[28] Operational Changes - The number of retail stores decreased to 1,158 as of March 29, 2025, down from 1,239 as of March 30, 2024, representing a decline of 6.5%[34] - The operating margin for Capri was (11.2)% for the three months ended March 29, 2025, compared to (44.4)% in the same period last year, showing improvement[32] - The operating margin for the three months ended March 29, 2025, was -11.2%, compared to 7.5% in the same period last year[38] Transformation Initiatives - The company is undergoing a multi-year ERP implementation to standardize finance IT applications across its organization[38] - The Capri transformation program aims to improve operational effectiveness and efficiency, with a focus on digital capabilities and shared platforms across brands[41] - The majority of operational and IT projects were paused during Fiscal 2024, with reassessment planned for Fiscal 2026[41] - The Capri transformation program aims to enhance operational effectiveness and efficiency through multi-year initiatives across various operational aspects, including supply chain and digital capabilities[46][48] Previous Fiscal Year Performance - For the fiscal year ended March 30, 2024, gross profit was $3,339 million, while operating expenses totaled $3,580 million, leading to a total operating loss of $241 million and an operating margin of (4.7)%[48] - The net loss attributable to Capri for the three months ended March 30, 2024, was $472 million, translating to a diluted net loss per ordinary share of $(4.03)[44] - For the fiscal year ended March 30, 2024, the net loss attributable to Capri was $229 million, with a diluted net loss per ordinary share of $(1.96)[48] - The company incurred foreign currency losses of $21 million in the three months ended March 30, 2024, and $37 million for the fiscal year ended March 30, 2024[44][48] - Asset impairment charges primarily related to the impairment of goodwill and intangible assets for the Jimmy Choo and Versace brands[44][48] Share Information - The weighted average diluted ordinary shares outstanding were 117,156,327 for the three months ended March 30, 2024, and 117,014,420 for the fiscal year ended March 30, 2024[44][48]

Wall Street analysts forecast that Capri Holdings (CPRI) will report quarterly loss of $0.16 per share in its upcoming release, pointing to a year-over-year decline of 138.1%. It is anticipated that revenues will amount to $982.81 million, exhibiting a decline of 19.6% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior ...

Core Viewpoint - Capri Holdings Ltd is selling the Versace brand to Prada for $1.375 billion, which is expected to close in the second half of 2025 pending regulatory approval [1][2]. Group 1: Financial Impact - The proceeds from the sale will strengthen Capri's balance sheet, enhance investment in Michael Kors, and support debt reduction and share buybacks [2]. - Capri originally purchased Versace for $2.12 billion in 2018, indicating a loss on the sale [2][4]. - The sale is anticipated to boost overall company margins and free up funds for revitalization efforts for Michael Kors [4]. Group 2: Market Context - The sale of Versace was anticipated, with reports of Capri seeking a buyer circulating for months, and Prada emerging as a likely suitor [2]. - The analyst estimates that Prada is paying approximately 22x FY24 EBITDA and 1.6x trailing sales for Versace [3]. Group 3: Strategic Considerations - The sale is viewed as a logical move for Capri following the failed acquisition of Tapestry Inc., allowing the company to raise capital and enhance margins [3]. - Parting with Versace eliminates a previously expected growth catalyst, raising questions about the future profitability of Michael Kors due to ongoing challenges in wholesale and promotional markets [4].

Core Viewpoint - Capri Holdings Limited has agreed to sell its luxury fashion brand Versace to Prada S.p.A. for $1.375 billion in an all-cash deal, expected to close in the second half of 2025, indicating ongoing consolidation in the luxury fashion industry [1] Group 1: Sale and Strategic Repositioning - The sale follows a successful six-year strategic repositioning of Versace, focusing on luxury heritage and craftsmanship, which has laid a strong foundation for sustainable long-term growth [2] - Capri Holdings aims to strengthen its financial position and concentrate resources on its remaining brands, Michael Kors and Jimmy Choo, following the sale of Versace [4] Group 2: Financial Implications - Proceeds from the Versace sale will be allocated to strategic business investments, debt reduction, and potential share repurchase programs, enhancing shareholder value and providing financial flexibility for growth opportunities [5] Group 3: Brand Performance and Market Position - Capri Holdings is experiencing strong brand equity and consumer engagement, driven by strategic digital marketing and product launches, which support long-term success [6] - The company has recalibrated pricing across its portfolio to improve full-price sell-through and reduce markdown dependency, with Versace's new products contributing to mid-single-digit average unit retail growth [7] Group 4: Market Challenges - Capri Holdings' shares have declined by 38.5% over the past three months, compared to a 24.6% decline in the industry, reflecting broader challenges in the luxury fashion market amid soft global demand [8]

Core Insights - The U.S. Federal Trade Commission blocked the merger between Tapestry (TPR) and Capri Holdings (CPRI), impacting investor sentiment and market dynamics [1] Company Analysis - Capri Holdings has been under scrutiny following the merger blockage, which may affect its strategic direction and market positioning [1] - The analysis indicates a long position in Capri Holdings shares, suggesting confidence in the company's future performance despite recent challenges [1] Industry Context - The merger blockage reflects ongoing regulatory scrutiny in the luxury goods sector, which may influence future M&A activities within the industry [1]

Core Viewpoint - Capri Holdings reported disappointing Q3 fiscal 2025 results, with both revenue and earnings declining year over year, although total revenues exceeded consensus estimates while earnings fell short [2][3]. Financial Performance - Adjusted quarterly earnings were 45 cents per share, down from $1.20 in the same period last year, and below the Zacks Consensus Estimate of 63 cents per share [3]. - Total revenues reached $1,261 million, surpassing the Zacks Consensus Estimate of $1,248 million, but decreased by 11.6% year over year on a reported basis and 11.4% on a constant-currency basis [4]. - Gross profit fell 12.5% year over year to $812 million, with gross margin contracting by 60 basis points to 64.4% due to lower full-price sell-throughs [4]. Segment Performance - Versace's revenues declined 15% year over year to $193 million, with retail sales dropping in the mid-teens and wholesale revenues declining in double digits [6]. - Jimmy Choo's revenues were $159 million, marking a 4.2% decrease, with retail sales stable and wholesale revenues down in the mid-teens [7]. - Michael Kors reported revenues of $909 million, a decrease of 12.1%, with retail sales declining in the low teens and wholesale revenues falling in the high-single digits [8]. Financial Health - The company ended the quarter with cash and cash equivalents of $356 million, long-term debt of $1.45 billion, and total shareholders' equity of $1.07 billion [9]. - Operating cash flow for the fiscal third quarter was $309 million, while free cash flow totaled $278 million [9]. Future Outlook - For fiscal 2025, Capri Holdings expects total revenues of $4.4 billion, with adjusted operating income projected at $100 million [10]. - For fiscal 2026, total revenues are anticipated to be $4.1 billion, with adjusted operating income expected to reach $150 million [12]. Estimate Trends - Recent estimates have trended downward, with the consensus estimate shifting by -178.05% [14]. - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [16].

Core Viewpoint - Capri Holdings Ltd.'s stock increased by 7.8% following reports of a potential sale of its Versace brand to Prada SpA for 1.5 billion euros [1] Group 1: Company Details - The deal for Versace is valued at 1.5 billion euros, as reported by Bloomberg [1] - Versace was founded in 1878 by Gianni Versace and is currently managed by his sister, Donatella Versace [1] Group 2: Market Reaction - Capri Holdings Ltd.'s stock experienced a significant rise of 7.8% early Monday due to the news of the potential sale [1]

Core Viewpoint - A class action lawsuit has been filed against Capri Holdings Limited, alleging that the company made false and misleading statements regarding the accessible luxury handbag market during the class period from August 10, 2023, to October 24, 2024 [1][3]. Group 1: Allegations in the Lawsuit - The lawsuit claims that the accessible luxury handbag market is a distinct segment within the overall handbag industry, known to executives at Capri and Tapestry, Inc. [3] - It is alleged that Capri and Tapestry maintained separate production facilities and supply chains for their accessible luxury handbags, confirming the distinct nature of this market [3]. - The lawsuit states that Capri and Tapestry viewed Coach and Michael Kors as their closest competitors, while not considering their brands to be in direct competition with luxury or mass-market handbags [3]. - A primary reason for Tapestry's failed acquisition attempt of Capri was to consolidate brands in the accessible luxury handbag market to reduce competition and improve profit margins [3]. - The likelihood of adverse regulatory actions regarding the Capri Acquisition was reportedly higher than what the defendants had disclosed [3]. Group 2: Investor Information - Investors have until February 21, 2025, to file a lead plaintiff motion in the class action lawsuit [1]. - The Portnoy Law Firm offers complimentary case evaluations for investors seeking to recover losses related to the alleged corporate wrongdoing [2][4].