Capri (US:CPRI)2025-11-04 11:49Financial Performance - Total revenue for the second quarter of Fiscal 2026 was $856 million, a decrease of 2.5% on a reported basis and 4.2% in constant currency[10]. - The company reported a net loss of $34 million, or $(0.28) per diluted share, compared to net income of $42 million, or $0.37 per diluted share, in the prior year[10]. - Total revenue for the three months ended September 27, 2025, was $856 million, a decrease of 2.5% compared to $878 million for the same period in 2024[30]. - Net loss attributable to Capri for the three months ended September 27, 2025, was $28 million, compared to a net income of $24 million for the same period in 2024[30]. - Total revenue for Michael Kors decreased by 1.8% to $725 million in Q3 2025 compared to $738 million in Q3 2024[36]. - Total revenue for Jimmy Choo declined by 6.4% to $131 million in Q3 2025 from $140 million in Q3 2024[36]. - The company's total revenue for the first half of 2025 was $1.65 billion, representing a 4.2% decline from $1.73 billion in the first half of 2024[36]. - For the first half of 2025, Michael Kors revenue was $1.36 billion, a decrease of 3.8% from $1.41 billion in the same period of 2024[36]. - Jimmy Choo's revenue for the first half of 2025 was $293 million, down 6.4% from $313 million in the first half of 2024[36]. Gross Profit and Margins - Gross profit was $522 million with a gross margin of 61.0%, down from $547 million and 62.3% in the prior year, impacted by tariffs which negatively affected the gross margin by approximately 130 basis points[10]. - Operating margin for Michael Kors was 10.1% for the three months ended September 27, 2025, compared to 11.8% in the same period last year[32]. - The adjusted operating margin for Q3 2025 was 2.3%, compared to 4.2% in Q3 2024[38]. Cash Flow and Assets - Cash flow used in operating activities for the second quarter was $33 million, resulting in free cash flow of $(46) million[10]. - Total current assets increased to $1,705 million as of September 27, 2025, compared to $1,667 million as of September 28, 2024[28]. Liabilities and Debt Management - Total liabilities increased to $5,687 million as of September 27, 2025, compared to $5,306 million as of September 28, 2024[28]. - The company plans to use proceeds from the Versace sale, expected to close in the fiscal third quarter, to repay the majority of its debt, enhancing financial flexibility[4]. Shareholder Returns - Capri Holdings announced a new $1 billion share repurchase program, expected to begin in fiscal 2027, aimed at strengthening the balance sheet and returning capital to shareholders[4][13]. Store Count and Operational Changes - The number of retail stores decreased to 907 as of September 27, 2025, down from 981 stores as of September 28, 2024[34]. - The Capri transformation program aims to enhance operational effectiveness and digital capabilities across brands[38]. Adjustments and Costs - The company incurred $32 million in total adjustments for Q3 2025, including impairment charges and restructuring costs[38].