Capri begins post-Versace reset with better-than-expected earnings

Capri Holdings has kicked off its first quarter without Versace in its portfolio, reporting better-than-expected earnings as it begins to stabilise its two remaining fashion brands Michael Kors and Jimmy Choo.

The NYSE-listed luxury group, which is selling Versace to Prada for $1.375 billion (£1.03 billion), posted revenue of $797 million (£596 million) for the three months ended 28 June 2025, down 6% on a reported basis and 7.7% in constant currency. Operating margin stood at 2%, with adjusted earnings per share of $0.50 (£0.37), surpassing forecasts.

Capri CEO John Idol said: “We are encouraged by our first quarter results. Trends improved sequentially, leading to both revenue and earnings per share that exceeded our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energise our fashion luxury houses.”

The group now categorises Versace as a discontinued operation following the signed agreement with Prada in April. The transaction is expected to close in the second half of 2025, pending regulatory approval.

Michael Kors, Capri’s largest brand, posted revenue of $635 million (£474 million), down by 5.9% year-on-year. Gross profit came in at $388 million (£290 million) with an operating margin of 9.9%.

Jimmy Choo’s revenue fell by 6.4% to $162 million (£121 million) , though gross margin improved significantly to 70.4%, up from 67.1% a year ago. Operating income remained flat at $4 million (£3 million) , reflecting an operating margin of 2.5%.

Looking ahead, Capri expects Michael Kors to deliver full-year revenue between $2.8 billion (£2.09 billion) and $2.875 billion (£2.15 billion), with an operating margin in the high-single digits. Jimmy Choo is forecast to generate between $565 million (£422 million) and $575 million (£430 million) in revenue for the fiscal year, but with an operating margin in the negative mid-single-digit range.

Capri’s full-year revenue is projected to fall between $3.375 billion (£2.52 billion) and $3.45 billion (£2.58 billion). Operating income is forecast at $100 million (£74.7 million), while diluted earnings per share are expected to land between $1.20 (£0.90) and $1.40 (£1.05).

While Capri remains cautious about the broader macroeconomic landscape, including tariffs, foreign exchange fluctuations and consumer uncertainty, the company said it remains “on track to stabilise the business this year”.

“We are focused on positioning Capri Holdings to deliver multiple years of revenue and earnings growth as well as increase shareholder value,” Idol concluded.

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