Core Insights - Capri Holdings Limited (CPRI) reported a decline in top-line revenue year over year but exceeded the Zacks Consensus Estimate, while the bottom line decreased and missed consensus estimates [1][10] - The company is focused on growth through its core brands and aims to enhance profitability and reduce debt following the expected closure of the Versace sale-off [2][3] Financial Performance - CPRI posted an adjusted quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.14, and down from adjusted earnings of $0.64 per share in the prior year [4][10] - Total revenues were $856 million, a decrease of 2.5% year over year, but above the Zacks Consensus Estimate of $830 million; on a constant-currency basis, revenues fell by 4.2% [5][10] - Gross profit decreased by 4.6% year over year to $522 million, with a gross margin decline of 130 basis points to 61% [5][6] Segment Performance - Michael Kors revenues declined by 1.8% year over year to $725 million, surpassing the Zacks Consensus Estimate of $697.2 million; gross profit fell to $430 million, with a gross margin contraction of 180 basis points to 59.3% [7] - Jimmy Choo's revenues were $131 million, down 6.4% year over year, missing the Zacks Consensus Estimate of $132.8 million; gross profit slightly decreased to $92 million, but gross margin expanded to 70.2% [8] Strategic Initiatives - The company plans to utilize proceeds from the Versace sale-off to improve financial flexibility and support a newly authorized $1 billion share repurchase program expected to begin in fiscal 2027 [3][12] - Capri Holdings anticipates improving retail trends in the second half of fiscal 2026, positioning itself for a return to growth in fiscal 2027 [3] Future Outlook - For the third quarter of fiscal 2026, Capri Holdings expects total revenues between $975 million and $1 billion, with an operating margin of 7-8% and earnings per share between $0.70 and $0.80 [15] - For fiscal 2026, total revenues are projected to be between $3.375 billion and $3.45 billion, with an expected operating income of $100 million and earnings per share of $1.20 to $1.40 [17][18]

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]

Financial Data and Key Metrics Changes - Total company revenue decreased 2.5% year-over-year to $856 million, with a 4.2% decline in constant currency [20][22] - Gross margin declined 130 basis points to 61%, primarily due to higher tariff rates impacting margins by approximately 120 basis points [22][23] - Operating margin decreased to 2.3% from 4.2% year-over-year [23] Business Line Data and Key Metrics Changes - Michael Kors revenue decreased 2% year-over-year, with retail sales showing signs of momentum and positive comps in the full-price channel [6][21] - Jimmy Choo revenue decreased 6% year-over-year, with retail sales improving sequentially but wholesale revenue declining mid-teens due to shipment timing [14][22] Market Data and Key Metrics Changes - Revenue in the Americas decreased 7%, while EMEA increased 1% and Asia increased 12% [21] - Michael Kors saw a 25% increase in revenue in Asia, driven by higher wholesale shipments [21] Company Strategy and Development Direction - The company is focused on the growth of Michael Kors and Jimmy Choo following the expected closure of the Versace sale, with plans to use proceeds to reduce debt and enhance financial flexibility [4][26] - A new $1 billion share repurchase program has been authorized, expected to begin in fiscal 2027 [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization and recovery in the business, with expectations for improved retail trends in the second half of fiscal 2026 [5][29] - The company anticipates returning to revenue and earnings growth in fiscal 2027, with gross margin expansion expected as tariff impacts are mitigated [29] Other Important Information - The company plans to invest approximately $350 million over the next three years for store renovations, aiming to enhance the luxury retail experience [12][26] - Inventory at quarter-end totaled $766 million, a 2.8% decline year-over-year [24] Q&A Session Summary Question: Can you speak to global reception for Michael Kors full-price retail repositioning? - Management noted stabilization in Michael Kors business, with positive consumer response to strategic initiatives and full-price comps turning positive [31][32] Question: What is the profile of the consumer engaging in North America? - Management indicated that Gen Z consumers are more price-sensitive, and strategic pricing architecture is helping attract them [40][41] Question: What are the expectations for revenue by geography in the back half? - Management stated that Europe is the best-performing region, with continued strong performance anticipated, while North America is expected to improve gradually [55][56]

• Substantially reduce debt levels • Invest in future growth • Reinstate a share repurchase program in the future SECOND QUARTER FISCAL 2026 HIGHLIGHTS 2Q Fiscal Year 2026 Earnings Presentation November 4, 2025 VERSACE SALE As previously announced, Capri Holdings entered into a definitive agreement to sell Versace to Prada for $1.375B in cash subject to certain adjustments. The transaction is expected to close in our fiscal third quarter, subject to customary closing conditions including regulatory approval ...

Core Insights - Patricia Gabriel has been appointed as the chief supply chain officer at PVH Corp, succeeding David Savman who will become the global brand president of Calvin Klein [1][4] - Gabriel brings over 25 years of experience in supply chain, manufacturing, and logistics from global consumer goods companies, including Mondelez International and AB InBev [2] - CEO Stefan Larsson emphasized Gabriel's consumer-focused approach and her ability to drive growth through operational excellence, which aligns with PVH's strategy to enhance Calvin Klein and Tommy Hilfiger as leading lifestyle brands [3] Company Overview - PVH Corp is focused on building Calvin Klein and Tommy Hilfiger into highly desirable lifestyle brands globally [3] - The company aims to leverage Gabriel's expertise in supply chain optimization and data-driven solutions to accelerate the progress of its PVH+ Plan [3] Leadership Transition - The leadership change is part of a strategic move to enhance operational capabilities and drive growth within the company [1][4] - Gabriel expressed excitement about joining PVH at a pivotal moment in its growth journey, highlighting the importance of operational excellence and supply chain optimization as competitive advantages [4]

Core Insights - PVH Corp. has appointed Patricia Gabriel as the new chief supply chain officer and global head of operations, effective in Q4 [1][2] - Gabriel emphasizes the importance of operational excellence and supply chain optimization as competitive advantages for growth and innovation [2] - She brings over 25 years of experience in supply chain management from her previous roles at Capri Holdings, Mondelez International, and AB InBev [3] Company Overview - PVH Corp. is the parent company of renowned apparel brands Calvin Klein and Tommy Hilfiger [1] - The company is currently in a growth phase, with a focus on enhancing its supply chain and operational capabilities [2] Leadership Transition - Patricia Gabriel will succeed David Savman, who has served as chief supply chain officer since 2022 and will now concentrate on his role as global brand president for Calvin Klein [4]

Core Insights - Patricia Gabriel has been appointed as the chief supply chain officer and global head of operations at PVH Corp., which owns Tommy Hilfiger and Calvin Klein [1][2] - Gabriel brings over 25 years of experience in consumer supply chains, previously serving as chief supply chain officer for Capri brands, including Michael Kors and Jimmy Choo [2][3] - The appointment comes as PVH aims to enhance its operational excellence and supply chain optimization to drive growth and innovation for its brands [3][4] Company Strategy - PVH is focused on maximizing the potential of its brands, Tommy Hilfiger and Calvin Klein, and has recently increased its revenue forecast [4] - The company is implementing high-profile marketing campaigns to connect its brands with culture and highlight iconic products [4] - PVH is also working on building a more agile supply chain to align with its strategic changes [4]

Core Viewpoint - Interparfums reported Q2 2025 financial results that fell short of analyst expectations, with both revenue and EPS declining year-over-year, yet the company maintained improved gross margins and reaffirmed its full-year financial outlook [1][10]. Financial Performance - EPS (GAAP) for Q2 2025 was $0.99, missing the consensus estimate of $1.08, and down 13% from $1.14 in Q2 2024 [2]. - Revenue (GAAP) was $333.94 million, slightly below the $334.0 million estimate, and down 2% from $342.2 million in Q2 2024 [2]. - Gross margin improved to 66.2%, up 1.7 percentage points from 64.5% a year earlier, while operating margin decreased to 17.7%, down 1.2 percentage points from 18.9% [2][7]. - Net income attributable to Interparfums, Inc. was $32.0 million, a 13% decline from $36.8 million in Q2 2024 [2]. Business Model and Strategy - Interparfums develops and distributes prestige fragrances through long-term licensing agreements with brands like Jimmy Choo, Lacoste, Coach, and Montblanc, allowing access to global markets [3]. - Recent initiatives include expanding the brand lineup with new licensing deals for Off-White and Longchamp, and growing proprietary offerings like Solférino [4][6]. Regional Performance - The U.S. accounted for 35% of net sales in Q2 2025, with Western Europe growing sales by 3% year-to-date and Central and South America increasing by 7% [5]. - Eastern Europe saw a 14% increase in sales, while the Asia-Pacific region experienced a 12% decline, primarily due to lower results in Australia and distribution issues in South Korea [5]. - The Middle East and Africa reported a 19% decline in net sales, largely due to the end of the Dunhill fragrance license [5]. Financial Health and Outlook - Cash and short-term investments totaled $205 million as of June 30, 2025, down from $234.7 million at the end of 2024, but working capital remained healthy at $654 million [9]. - The company improved operating cash flow, generating $5 million in cash in the first half of 2025, compared to a $26 million consumption in the prior year [9]. - Interparfums raised its quarterly dividend by 7% to $0.80 per share, payable on September 30, 2025 [9]. Future Guidance - Management reaffirmed its full-year 2025 guidance, expecting net sales of $1.51 billion and diluted EPS of $5.35, indicating confidence in a stronger second half of 2025 [10]. - The company aims to sustain gross margin gains and convert investments in new brands into higher sales and profits while managing regional volatility [11].

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 $4.90 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 $983 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 $208 million, with gross profit dropping to $136 million and gross margin contracting 60 basis points to 65.4% [6] - Jimmy Choo's revenues were $133 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 $694 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 $1.375 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 $1.48 billion, and total shareholders' equity of $372 million [9] - Operating cash flow for fiscal 2025 was $281 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 $765 to $780 million, indicating a decline from $1,067 million in the year-ago quarter [13] - For fiscal 2026, total revenues are projected to be between $3.3 billion and $3.4 billion, down from $4.4 billion in 2025, with an anticipated operating income of around $100 million [15] - Diluted earnings per share for fiscal 2026 are forecasted to be between $1.20 and $1.40, compared to a loss of $10 per share in 2024 [16]

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]