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 ...

word of advice: if you’re in your 20s and just started dating a new girl, start with michael kors or something and progress upwards from there.look how miserable @hjevelynha is after receiving her 75th birkin this year: https://t.co/9yH88tmodA ...

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 - Capri Holdings (CPRI.US), the parent company of the Michael Kors brand, experienced a stock price increase of over 18% at the beginning of trading, reaching a peak of $21.5 before narrowing to approximately 12% [1] Financial Performance - Capri reported a 6% decline in revenue for the first fiscal quarter, totaling $797 million, which was slightly above expectations [1] - Earnings per share were $0.50, exceeding market expectations of $0.13 [1] - Revenue from Michael Kors, which accounts for 68% of total revenue, decreased by 5.9%, compared to a 14.2% decline in the same period last year [1] Future Outlook - The company anticipates second fiscal quarter revenue to be between $815 million and $835 million, with market expectations at $819 million [1]

Acquisition & Strategy - Tapestry's attempted $85 billion acquisition of Capri Holdings was blocked by the FTC due to concerns about creating an excessively concentrated player in the accessible luxury handbags market [1][2] - Wall Street disliked the Capri deal, fearing Tapestry would overstretch its balance sheet to acquire a consistently worse operator [3] - Tapestry redeemed deal debt and announced a $28 billion buyback program, including a $2 billion accelerated share repurchase program, representing roughly 15% of shares outstanding [6][7] - Tapestry sold its Steuart Weitzman brand to focus on the core Coach brand and turning around Kate Spade [8][9] Financial Performance & Market Dynamics - Tapestry's stock has increased 148% since the merger was blocked and is up 69% for the year [2] - Coach's revenue growth accelerated from 2% to 15% on a constant currency basis [11][12] - Tapestry delivered substantial top and bottom-line beats, raising full-year earnings forecast by $025 [10] - Kate Spade's constant currency revenue growth has declined for eight straight quarters, down 12% [16] Future Outlook & Risks - Tapestry aims to turn around Kate Spade by emulating Coach's strategies, targeting younger consumers and developing new products [17] - The stock trades at just under 22 times this year's earnings estimate, with 18% earnings growth, but is considered inherently risky given its recent performance [19][20] - The report suggests a potential buying opportunity if Tapestry reports a good quarter that doesn't fully satisfy shareholders, leading to a sell-off [20]