Capri’s Q2 Revenues Slip, Company Gets Ready for Life Post-Versace

Core Insights - Capri Holdings is undergoing a strategic shift following the $1.4 billion sale of Versace to Prada, focusing on the growth of its brands Michael Kors and Jimmy Choo [1][4] - The company reported a revenue decline of 2.5% to $856 million for the quarter ended September 27, with a more favorable constant currency decline of 4.2% compared to 7.7% in the previous quarter [2] - Adjusted operating income was $20 million, resulting in an operating margin of 2.3%, down from 4.2% a year earlier, while net losses totaled $34 million [2] Financial Performance - Michael Kors' revenues decreased by 1.8% to $725 million, with a constant currency decline of 3.3% [4] - Jimmy Choo's revenues fell 6.4% to $131 million, reflecting a 9.3% drop in constant currencies [5] - Despite the challenges, the CEO expressed optimism about improving retail trends in the second half of the fiscal year and a return to growth next year [5] Strategic Initiatives - The proceeds from the Versace sale are intended to repay a significant portion of the company's debt, enhancing its balance sheet and financial flexibility for future investments and shareholder returns [4] - Capri Holdings announced a three-year, $1 billion share repurchase plan to buy back its own stock, indicating a commitment to returning capital to shareholders [5]