The gross profit of the company was $812 million, with a gross margin of 64.4 per cent, compared to $928 million and 65.0 per cent in the same period prior year, with a gross profit margin decline of 60 basis points (bps), Capri Holdings said in a press release.
Capri Holdings has reported revenue of $1.26 billion in Q3 FY25, down 11.6 per cent YoY.
It posted a net loss of $547 million, with declines across Versace (-15 per cent), Jimmy Choo (-4.2 per cent), and Michael Kors (-12.1 per cent).
FY25 revenue is projected at $4.4 billion, and FY26 at $4.1 billion, with adjusted operating income rising from $100 million to $150 million.
The company’s loss from operations was $590 million with an operating margin of 46.8 per cent compared to income from operations of $122 million and operating margin of 8.5 per cent in the prior year. The adjusted income from operations was $76 million and adjusted operating margin was 6.0 per cent, compared to $172 million and 12.1 per cent in the prior year.
The net loss of the company was $547 million, or $4.61 per share, compared to net income of $105 million, or $0.88 per diluted share, in the same period of prior year. The adjusted net income was $54 million, or $0.45 per diluted share, compared to $142 million, or $1.20 per diluted share, in the prior year period.
Versace’s Q3 fiscal 2025 revenue of $193 million decreased 15.0 per cent on both reported basis and constant currency basis compared to the prior year. Retail sales decreased mid-teens while wholesale revenue decreased double digits. Revenue in the Americas declined 21 per cent, revenue in Europe, Middle East, and Africa (EMEA) decreased 13 per cent and revenue in Asia declined 11 per cent. Versace’s global database increased by 1.1 million new consumers, representing 15 per cent growth over the last year.
Versace’s operating loss was $21 million and operating margin was 10.9 per cent, compared to operating loss of $14 million and operating margin of 6.2 per cent in the prior year. The decline in operating margin rate was primarily due to expense deleverage on lower revenue.
In Q3, Jimmy Choo earned a revenue of $159 million, a decrease of 4.2 per cent on both a reported basis and constant currency basis compared to the prior year. Retail sales were in-line with the prior year while wholesale revenue decreased mid-teens. Revenue in the Americas declined 10 per cent, while revenue in EMEA increased 9 per cent and revenue in Asia decreased 17 per cent. Jimmy Choo’s global database increased by 0.7 million new consumers, representing 12 per cent growth over the last year.
Jimmy Choo’s operating loss was $6 million and operating margin was (3.8) per cent, compared to operating income of $4 million and operating margin of 2.4 per cent in the prior year. The decline in operating margin rate was primarily due to expense deleverage on lower revenue.
Michael Kors’ revenue of $909 million decreased 12.1 per cent on a reported basis and 11.7 per cent on a constant currency basis compared to prior year. Retail sales decreased low-teens while wholesale revenue declined high-single-digits. Revenue in the Americas decreased 10 per cent, while revenue in EMEA declined 13 per cent and revenue in Asia decreased 27 per cent. Michael Kors’ global database increased by 9 million new consumers, representing 11 per cent growth over the last year.
Michael Kors’ operating income was $147 million and operating margin was 16.2 per cent, compared to $219 million and 21.2 per cent in the prior year. The decline in operating margin rate was primarily due to expense deleverage on lower revenue.
Outlook for full fiscal 2025
For fiscal 2025, Capri Holdings projects total revenue of around $4.4 billion, factoring in a $40 million negative impact from foreign currency, with adjusted operating income expected to reach approximately $100 million.
Versace anticipates revenue of about $810 million, with a $10 million foreign currency impact and an operating margin in the negative high-single-digit range. Jimmy Choo forecasts revenue of $600 million, with a $5 million foreign currency impact and an operating margin in the negative low-single-digit range. Michael Kors expects revenue of $3.0 billion, with a $25 million foreign currency impact and an operating margin in the low-double-digit range.
Outlook for full fiscal 2026
For full fiscal 2026, Capri Holdings expects total revenue of $4.1 billion, including a negative impact of approximately $100 million from foreign currency, and adjusted operating income of approximately $150 million. The operating margin is expected to be in the low-double-digit range.
Versace is expected to generate a revenue of $800 million, with a negative foreign currency impact of approximately $25 million, and an operating margin around break-even. Jimmy Choo’s revenue is projected at $550 million, with a $15 million foreign currency impact and a slightly negative operating margin. Michael Kors anticipates $2.75 billion in revenue, with a $60 million foreign currency impact.
Fibre2Fashion News Desk (SG)