The earnings call reflected significant challenges faced by Capri Holdings, including substantial revenue declines across brands and geographies, coupled with reduced operating margins. However, there are positive developments in consumer engagement, strategic pricing adjustments, and growth in specific segments like eyewear and fragrance. The company's focus on data-driven strategies and marketing efforts offers potential for recovery, but the current sentiment remains cautious given the near-term challenges.

Company Guidance

During the Capri Holdings Limited third quarter fiscal 2025 conference call, the company provided guidance indicating a challenging near-term outlook with expectations of a 20% revenue decline in the fourth quarter, amounting to approximately $975 million. This includes a $25 million foreign currency headwind and a $15 million impact from store closures. Retail sales are forecasted to decline in the mid-teens, while wholesale revenue is anticipated to drop by about 30%, marking the most significant decline before moderating as stabilization efforts take effect. By brand, Versace is expected to generate $200 million in revenue, impacted negatively by $7 million due to currency fluctuations; Jimmy Choo is forecasted at $125 million, with a $5 million currency impact; and Michael Kors is projected to achieve $650 million, with a $13 million currency impact. The company forecasts a flat gross margin compared to the prior year for the fourth quarter and an operating loss of $25 million. For fiscal 2026, Capri Holdings anticipates revenue stabilization and modest gross margin expansion, with a forecast of $4.1 billion in total company revenue, factoring in a $100 million negative impact from foreign exchange rates and a $60 million impact from planned store closures. Versace is projected to achieve $800 million in revenue, Jimmy Choo $550 million, and Michael Kors $2.75 billion, each affected by foreign currency. The company plans to execute new cost reduction initiatives, aiming to reduce expenses by $200 million, resulting in an operating income forecast of $150 million for fiscal 2026. Looking ahead to fiscal 2027, Capri Holdings expects to return to revenue growth and continued operating margin expansion.

Versace VIC Consumer Growth

Versace's VIC consumers grew at a double-digit rate, responding positively to sophisticated offerings and indicating successful engagement with high-value customers.

Eyewear and Fragrance Success

Both Versace and Michael Kors experienced growth in their eyewear and fragrance segments, with Michael Kors' latest fragrance launch exceeding expectations.

Data-Driven Strategy Adjustments

The company is implementing data-driven strategy adjustments, especially in pricing and product offerings, to better align with consumer expectations and improve full-price sell-throughs.

Marketing and Brand Awareness Initiatives

All three brands have shown significant increases in their global consumer databases, reflecting successful brand awareness and consumer engagement efforts.

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Capri Holdings (CPRI) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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CPRI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 28, 2025	2025 (Q4)	-0.13 / -	0.42	―	―	―
Feb 05, 2025	2025 (Q3)	0.66 / 0.45	1.2	-62.50% (-0.75)
Nov 07, 2024	2025 (Q2)	0.73 / 0.65	1.13	-42.48% (-0.48)	―	―
Aug 08, 2024	2025 (Q1)	0.60 / 0.04	0.74	-94.59% (-0.70)	―	―
May 29, 2024	2024 (Q4)	0.67 / 0.42	0.97	-56.70% (-0.55)	―	―
Feb 08, 2024	2024 (Q3)	1.73 / 1.20	1.84	-34.78% (-0.64)	―	―
Nov 09, 2023	2024 (Q2)	1.52 / 1.13	1.79	-36.87% (-0.66)	―	―
Aug 10, 2023	2024 (Q1)	0.71 / 0.74	1.5	-50.67% (-0.76)	―	―
May 31, 2023	2023 (Q4)	0.94 / 0.97	1.02	-4.90% (-0.05)
Feb 08, 2023	2023 (Q3)	2.22 / 1.84	2.22	-17.12% (-0.38)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CPRI Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 05, 2025	$24.03	$21.61	-10.07%
Nov 07, 2024	$21.99	$20.52	-6.68%
Aug 08, 2024	$32.10	$30.54	-4.86%
May 29, 2024	$34.18	$33.85	-0.97%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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