Financial Data and Key Metrics Changes - Total company revenue for the fourth quarter decreased by 15% year-over-year to $1 billion, slightly better than expectations [29] - The company reported a net loss of $581 million, resulting in a diluted loss per share of $4.9, primarily due to a non-cash tax valuation allowance [29][38] - Gross margin declined to 61%, down 170 basis points from the prior year, primarily due to inventory actions taken during the quarter [33] Business Line Data and Key Metrics Changes - Michael Kors revenue decreased by 16% compared to the prior year, with global retail sales down mid-teens and wholesale sales declining double digits [10][31] - Jimmy Choo revenue decreased by 3%, with global retail sales declining high single digits while wholesale increased high teens [19][32] - Michael Kors gross margin was 58.6%, down from 60.8% last year, while Jimmy Choo's gross margin was 66.2%, down from 70.1% [34] Market Data and Key Metrics Changes - Revenue in the Americas decreased by 13%, EMEA declined by 14%, and Asia saw a decrease of 23% [30][32] - For Jimmy Choo, revenue in the Americas decreased by 7%, while EMEA revenue increased by 9% and Asia revenue declined by 16% [32] Company Strategy and Development Direction - The company announced the pending sale of Versace to focus on growth opportunities within Michael Kors and Jimmy Choo, aiming to reduce debt and reinstate a share repurchase program [5][6] - Strategic initiatives include enhancing brand desirability, improving product offerings, and stabilizing the wholesale business [7][8][19] - The company plans to renovate approximately 50% of the Michael Kors store fleet over the next three years to drive sales recovery [16][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite a challenging macro environment, citing early signs of improvement in sales momentum and consumer engagement [6][17] - The company anticipates total revenue for fiscal 2026 to be between $3.3 billion and $3.4 billion, with gradual progression expected as strategic initiatives gain traction [45] Other Important Information - The company plans to use proceeds from the sale of Versace to reduce debt, which is expected to significantly lower interest expenses [41] - The company is proactively managing tariff risks and expects to mitigate their impact over time through sourcing optimization and potential price increases [44][70] Q&A Session Summary Question: Can you speak to the comfort in the troughing revenue expectations and margin degradation? - Management highlighted a significant improvement in Michael Kors retail performance, with a near flat comp in the current quarter compared to a 15% decline previously, driven by strong full-price sell-throughs and effective storytelling [58][60] Question: What is the wholesale outlook for Michael Kors this year? - Management indicated that discussions with wholesale partners have been positive, with increased commitments due to the successful new storytelling and product initiatives [74][76] Question: What strategies are in place to drive traffic and conversion? - Management emphasized the importance of marketing initiatives, data analytics, and influencer programs to engage consumers and drive traffic, noting that conversion rates have remained strong [82][84] Question: Can you elaborate on the strategies to improve the sales trajectory of Michael Kors? - Management acknowledged past missteps but emphasized a return to the brand's heritage and pricing strategy that aligns with consumer expectations, aiming for sustainable growth [90][92] Question: What is the timeline for achieving steady state pricing? - Management expects to reach the desired pricing levels by the fall season, having already made significant adjustments to align with historical price points [105]

Financial Data and Key Metrics Changes - Total company revenue for Q4 2025 was $1 billion, a decrease of 15% compared to the prior year, slightly better than expectations [27] - The company reported a net loss of $581 million, resulting in a diluted loss per share of $4.9, primarily due to a non-cash tax valuation allowance [27][35] - Gross margin decreased to 61%, down 170 basis points from the prior year, primarily due to inventory actions taken during the quarter [31][32] Business Line Data and Key Metrics Changes - Michael Kors revenue decreased by 16% compared to the prior year, with global retail sales down mid-teens and wholesale sales declining double digits [29][30] - Jimmy Choo revenue decreased by 3% compared to the prior year, with global retail sales declining high single digits while wholesale increased high teens [30] - Michael Kors gross margin was 58.6%, down from 60.8% last year, while Jimmy Choo's gross margin was 66.2%, down from 70.1% [32] Market Data and Key Metrics Changes - Revenue in The Americas decreased by 13%, EMEA declined by 14%, and Asia saw a decrease of 23% [28][30] - In Jimmy Choo, revenue in The Americas decreased by 7%, while EMEA revenue increased by 9% and Asia revenue declined by 16% [30] Company Strategy and Development Direction - The company plans to focus resources on Michael Kors and Jimmy Choo following the pending sale of Versace, aiming to maximize value and reduce debt levels [4][5] - Strategic initiatives include enhancing brand desirability, improving product offerings, and stabilizing the wholesale business [6][10] - The company aims to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million, while restoring operating margins to the double-digit range [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future despite a challenging macro environment, focusing on strategic initiatives to improve sales trends [5][24] - Early signs of improvement in sales momentum and key indicators such as consumer database growth and store traffic were noted [16][17] - Management expects trends to improve throughout fiscal 2026, positioning the company for growth in fiscal 2027 and beyond [24][50] Other Important Information - The company plans to renovate approximately 50% of the Michael Kors store fleet over the next three years, with an estimated cost of $350 million [47] - The anticipated impact of tariffs is expected to increase the cost of goods sold by approximately $60 million in fiscal 2026 [42] - The company will reclassify Versace as a discontinued operation beginning in fiscal 2026, excluding it from future non-GAAP results [3] Q&A Session Summary Question: Discussion on revenue expectations and margin degradation - Management expressed optimism about revenue growth based on early Q1 trends, with significant improvements in Michael Kors retail performance and strong full-price sell-throughs [56][58] - Concerns about margin degradation were attributed to tariff impacts and inventory actions, with plans to mitigate these effects over time [65] Question: Wholesale outlook for Michael Kors - Management indicated that discussions with wholesale partners have been positive, with increased commitments from some partners and successful launches on platforms like Amazon [72][74] Question: Strategies to drive traffic and conversion - Management highlighted the importance of marketing initiatives, storytelling, and data analytics to engage consumers and drive traffic, noting improvements in conversion rates [80][81] Question: Strategies to improve sales trajectory for Michael Kors - Management acknowledged past missteps and emphasized a return to the brand's heritage and pricing strategies that resonate with consumers, aiming for sustainable growth [90][92] Question: Pricing strategy and its implications - Management expects to achieve a steady pricing state by the fall season, with adjustments made to align with historical price points while evaluating potential price increases to mitigate tariff risks [100]

Company Performance - Capri Holdings reported a quarterly loss of $4.90 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.16, and compared to earnings of $0.42 per share a year ago, indicating an earnings surprise of -2,962.50% [1] - The company posted revenues of $1.04 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.31%, but down from $1.22 billion in the same quarter last year [2] - Over the last four quarters, Capri Holdings has not been able to surpass consensus EPS estimates, although it has topped consensus revenue estimates two times [2] Stock Performance - Capri Holdings shares have declined approximately 16.7% since the beginning of the year, while the S&P 500 has gained 0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $945.17 million, and for the current fiscal year, it is $1.12 on revenues of $4.1 billion [7] Industry Outlook - The Retail - Apparel and Shoes industry, to which Capri Holdings belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Capri Holdings may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Future Expectations - The sustainability of Capri Holdings' stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Capri Holdings is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Versace Sale & Strategic Shift - Capri Holdings entered an agreement to sell Versace to Prada Group for $1.375 billion in cash, expected to close in the second half of calendar 2025[4] - Proceeds from the Versace sale will be used for future growth investments, debt reduction, and a potential share repurchase program[6] - Beginning in fiscal year 2026, Versace will be classified as a discontinued operation[5] Fiscal Year 2025 Performance - Fourth quarter revenue decreased by 15%[9] - Michael Kors fourth quarter revenue decreased 16%[12] - Jimmy Choo fourth quarter revenue decreased 3%[26] - The company's global customer database increased by 10% year-over-year[9] Fiscal Year 2026 Outlook - The company projects first quarter revenue of approximately $765 million to $780 million[32] - The company projects fiscal year 2026 revenue of approximately $3.3 billion to $3.4 billion[32] - The company projects fiscal year 2026 net interest income of approximately $85 million to $90 million[32]

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]

Core Viewpoint - Capri Holdings (CPRI) is expected to report a quarterly loss of $0.16 per share, reflecting a year-over-year decline of 138.1%, with anticipated revenues of $982.81 million, down 19.6% from the previous year [1] Revenue Estimates - The consensus estimate for 'Revenue- Versace' is $195.54 million, indicating a decline of 25.9% from the prior-year quarter [3] - Analysts predict 'Revenue- Michael Kors' will reach $660.03 million, representing a decrease of 19.7% from the year-ago quarter [4] - 'Geographic Revenue- Americas' is expected to be $527.03 million, down 18.5% from the previous year [4] - 'Geographic Revenue- Asia' is projected at $168.26 million, indicating a decline of 24.9% from the prior-year quarter [5] - 'Geographic Revenue- EMEA' is anticipated to reach $292.33 million, reflecting a decrease of 17% from the year-ago quarter [5] Operational Income - The average prediction for 'Income from operations- Michael Kors' is $36.42 million, a significant drop from $116 million reported in the same quarter of the previous year [6] Stock Performance - Capri Holdings shares have increased by 13% over the past month, outperforming the Zacks S&P 500 composite, which rose by 8.2% [6]

Group 1 - The "Trump Tariff Losers" index increased by 0.85%, reaching 84.49 points [1] - Zebra Technologies saw a rise of 5.16%, while Five Below increased by 3.12% [1] - Gap and Coach also experienced gains, with increases of 1.35% and 1.13% respectively [1] Group 2 - Dollar Tree rose by 0.9%, indicating a positive performance among some retailers [1] - Best Buy declined by 1.19%, and Harley-Davidson fell by 1.24%, showing mixed results in the sector [1]

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]

中国将 "适度" 减少美国电影进口数量。 国家电影局发言人称，美国政府加征关税 "会令国内观众对美国影片好感度进一步降低"，因此将 遵循市场规律，适度减少美国影片进口数量。中国是全球第二大电影市场，据猫眼娱乐数据，引入 国内的美国电影数量在 2018 年达到峰值，共 63 部，随后数量下滑，2022 年仅 25 部，去年又升至 42 部。近年来国产电影更受消费者支持，一个例子是《哪吒之魔童闹海》全球票房已破 156 亿， 进入全球影史票房第五。 优衣库大部分销往美国的优衣库产品都产自东南亚，此前特朗普宣布将对中国以外的其他国家、地 区暂停征收 90 天的关税。有分析师称，纺织供应链比其他行业供应链灵活，关税对优衣库的负面 影响将小于任天堂、丰田等日本公司。 马云现身阿里云谷园区。 社媒流传的影像显示，马云身穿阿里云 15 周年纪念 T 恤，并佩戴了阿里新版工牌，工牌上印有他 的照片和花名 "风清扬"。此行他参加了阿里云新财年启动会并上台讲话。据我们了解，阿里近期 在大力鼓励员工佩戴工牌，并推出了有戴脖、斜挎和卡夹三种戴法的新工牌，员工可自愿申请换 新，员工还可凭工牌享受园区附近商户的折扣。自去年底以来，马云已 ...