Capri (US:CPRI)2025-08-06 10:47Financial Performance - Total revenue for Q1 Fiscal 2026 was $797 million, a decrease of 6.0% year-over-year, and a 7.7% decrease on a constant currency basis[6] - Gross profit was $502 million with a gross margin of 63.0%, compared to $535 million and 63.1% in the prior year[11] - Net income was $56 million, or $0.47 per diluted share, compared to $5 million, or $0.03 per diluted share, in the prior year[11] - Total revenue for Capri Holdings decreased to $797 million in Q1 2025, down 6.0% from $848 million in Q1 2024[29] - Michael Kors revenue declined to $635 million, a decrease of 5.9% compared to $675 million in the same period last year[31] - Jimmy Choo revenue fell to $162 million, down 6.4% from $173 million year-over-year[31] - Gross profit for Capri Holdings was $502 million, down from $535 million, reflecting a decrease in gross margin[31] - Net income attributable to Capri from continuing operations was reported at $56 million, significantly higher than $3 million in the previous year[37] - Diluted net income per ordinary share from continuing operations increased to $0.47, compared to $0.03 in the same quarter last year[37] Cash Flow and Expenditures - Cash flow from operating activities for the first quarter was $20 million, with capital expenditures of $13 million, resulting in free cash flow of $7 million[11] Future Guidance - The company expects total revenue for Fiscal Year 2026 to be approximately $3.375 to $3.45 billion[16] - The operating income guidance for Fiscal Year 2026 is approximately $100 million[16] - The effective tax rate is expected to be in the mid-teens range[16] Strategic Initiatives - The Versace transaction with Prada is expected to close in the second half of calendar year 2025[8] - The company aims to stabilize its business this year while establishing a foundation for growth in Fiscal 2027[5] Operational Improvements - Total selling, general and administrative expenses decreased to $455 million from $491 million, indicating cost management efforts[31] - Income from operations increased to $16 million, compared to $11 million in the prior year, showing operational improvement[37] - The operating margin improved to 2.0% from 1.3% year-over-year, reflecting better cost control[37] - The number of retail stores decreased to 912 as of June 28, 2025, down from 991 a year earlier, indicating a strategic reduction in physical locations[33]