Capri Holdings, which owns renowned fashion brands such as Michael Kors, Versace, and Jimmy Choo, announced its fiscal second-quarter 2025 results on November 7, revealing a significant shortfall in sales projections. The global downturn in demand for luxury goods led to a 16.4% decline in revenue compared to the same period last year, amounting to $1.08 billion.
The financial summary for the quarter is as follows:
– Gross margin was 64.3%, with an operating loss of $38 million
– Adjusted earnings per share stood at $0.65, a decrease from the prior year
– Inventory decreased by 10% year-over-year, with cash and cash equivalents totaling $182 million and net debt at $1.53 billion
Capri’s Chairman and CEO, John D. Idol, stated, “Overall, we were disappointed with our second quarter results as performance continued to be impacted by softening demand globally for fashion luxury goods.” He added, “Versace, Jimmy Choo and Michael Kors continued to resonate with consumers as evidenced by the 10.9 million new consumers added across our databases, representing 13% growth versus last year. This reflects the strong brand equity and enduring value of our three iconic houses.”
The company remains committed to pursuing sustainable growth in the global market and advancing strategic initiatives, even amidst a challenging economic landscape.
Additionally, Capri Holdings’ acquisition by Tapestry, announced in August 2023, remains under scrutiny. The U.S. Federal Trade Commission (FTC) recently issued a preliminary injunction to halt the transaction, prompting Capri and Tapestry to jointly file an appeal.