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Capri Holdings Q4 Earnings Fall Short of Estimates, Revenues Dip Y/Y
CPRICapri (CPRI) ZACKS·2025-05-28 17:26

Core Insights - Capri Holdings Limited (CPRI) reported disappointing fourth-quarter fiscal 2025 results, with both revenue and earnings declining year over year, although total revenues exceeded the Zacks Consensus Estimate while earnings fell short [1][2] Financial Performance - The company posted an adjusted quarterly loss of 4.90pershare,significantlywiderthantheZacksConsensusEstimateofalossof16cents,anddownfromadjustedearningsof42centsintheprioryear[4]−Totalrevenueswere4.90 per share, significantly wider than the Zacks Consensus Estimate of a loss of 16 cents, and down from adjusted earnings of 42 cents in the prior year [4] - Total revenues were 1,035 million, a decrease of 15.4% year over year on a reported basis and 14.1% on a constant-currency basis, surpassing the Zacks Consensus Estimate of 983million[5]−Grossprofitfell17.7983 million [5] - Gross profit fell 17.7% year over year to 631 million, with gross margin contracting 170 basis points to 61% [5] Segment Performance - Versace revenues decreased 21.2% year over year to 208million,withgrossprofitdroppingto208 million, with gross profit dropping to 136 million and gross margin contracting 60 basis points to 65.4% [6] - Jimmy Choo's revenues were 133million,down2.9133 million, down 2.9% on a reported basis, with gross profit decreasing to 88 million and gross margin contracting 390 basis points to 66.2% [7] - Michael Kors revenues were 694million,adecreaseof15.6694 million, a decrease of 15.6% on a reported basis, with gross profit falling to 407 million and gross margin contracting 220 basis points to 58.6% [8] Strategic Developments - Capri Holdings is in the early stages of a strategic turnaround, with positive indicators emerging from new initiatives despite ongoing macroeconomic challenges [2] - The announced sale of the Versace brand to Prada Group for 1.375billionaimstosharpenfocus,strengthenthebalancesheet,reducedebt,andpotentiallyreinstatesharerepurchases[3][11]FinancialHealth−Asoftheendofthequarter,CapriHoldingshadcashandcashequivalentsof1.375 billion aims to sharpen focus, strengthen the balance sheet, reduce debt, and potentially reinstate share repurchases [3][11] Financial Health - As of the end of the quarter, Capri Holdings had cash and cash equivalents of 166 million, long-term debt of 1.48billion,andtotalshareholders′equityof1.48 billion, and total shareholders' equity of 372 million [9] - Operating cash flow for fiscal 2025 was 281million,whilefreecashflowtotaled281 million, while free cash flow totaled 153 million [9] Future Outlook - For the first quarter of fiscal 2026, total revenues are expected to be in the range of 765to765 to 780 million, indicating a decline from 1,067millionintheyear−agoquarter[13]−Forfiscal2026,totalrevenuesareprojectedtobebetween1,067 million in the year-ago quarter [13] - For fiscal 2026, total revenues are projected to be between 3.3 billion and 3.4billion,downfrom3.4 billion, down from 4.4 billion in 2025, with an anticipated operating income of around 100million[15]−Dilutedearningspershareforfiscal2026areforecastedtobebetween100 million [15] - Diluted earnings per share for fiscal 2026 are forecasted to be between 1.20 and 1.40,comparedtoalossof1.40, compared to a loss of 10 per share in 2024 [16]