Capri Holdings Ltd
NYSE:CPRI
Capri Holdings Ltd
Capri Holdings Ltd., a global fashion luxury group, stands as a testament to the interconnected tapestry of high fashion and business acumen. Emerging as a powerhouse in the realm of luxury apparel and accessories, Capri Holdings operates through its prestigious trio of renowned brands: Michael Kors, Versace, and Jimmy Choo. By strategically acquiring these iconic labels, the firm has sculpted a diversified portfolio that appeals to a broad spectrum of fashion enthusiasts around the world. By managing an array of product lines – ranging from ready-to-wear and footwear to accessories and handbags – Capri Holdings leverages the individual allure of each brand to penetrate different market segments, crafting a symbiotic relationship between timeless fashion heritage and modern consumer demands.
The company generates revenue by creating an ecosystem where fashion transcends mere clothing and accessories. They orchestrate a seamless distribution strategy across a variety of channels, including directly operated retail stores, e-commerce platforms, and a network of wholesale relationships. Capri Holdings increases its brand visibility and consumer reach through strategic collaborations and marketing initiatives, often harnessing the power of celebrity endorsements to amplify brand prestige and desirability. This comprehensive approach to luxury retail allows Capri Holdings not only to cultivate an aspirational lifestyle but also to capitalize on the booming global appetite for luxury consumption, thus fortifying its economic footprint in the high fashion industry.
Capri Holdings Ltd., a global fashion luxury group, stands as a testament to the interconnected tapestry of high fashion and business acumen. Emerging as a powerhouse in the realm of luxury apparel and accessories, Capri Holdings operates through its prestigious trio of renowned brands: Michael Kors, Versace, and Jimmy Choo. By strategically acquiring these iconic labels, the firm has sculpted a diversified portfolio that appeals to a broad spectrum of fashion enthusiasts around the world. By managing an array of product lines – ranging from ready-to-wear and footwear to accessories and handbags – Capri Holdings leverages the individual allure of each brand to penetrate different market segments, crafting a symbiotic relationship between timeless fashion heritage and modern consumer demands.
The company generates revenue by creating an ecosystem where fashion transcends mere clothing and accessories. They orchestrate a seamless distribution strategy across a variety of channels, including directly operated retail stores, e-commerce platforms, and a network of wholesale relationships. Capri Holdings increases its brand visibility and consumer reach through strategic collaborations and marketing initiatives, often harnessing the power of celebrity endorsements to amplify brand prestige and desirability. This comprehensive approach to luxury retail allows Capri Holdings not only to cultivate an aspirational lifestyle but also to capitalize on the booming global appetite for luxury consumption, thus fortifying its economic footprint in the high fashion industry.
Revenue & EPS: Capri Holdings' Q3 revenue of $1.025 billion fell 4% but exceeded expectations; EPS rose about 30% to $0.81.
Brands Divergence: Jimmy Choo revenue grew 5% while Michael Kors revenue declined 5.6%; Jimmy Choo showed strong wholesale and retail momentum.
Gross Margin: Underlying gross margin (excluding tariffs) expanded by 70 basis points, but reported gross margin declined due to higher tariff costs.
Debt Reduction: Capri completed the sale of Versace and used proceeds to cut net debt to just $80 million from $1.6 billion.
Outlook: Fiscal 2026 revenue guidance narrowed to $3.45–$3.475 billion; diluted EPS expected between $1.30–$1.40.
Growth Plans: Management remains confident in returning to revenue and earnings growth in fiscal 2027, supported by inventory discipline, improved full-price sales, and cost controls.
Store Renovations: About 50% of stores to be renovated over the next 3 years, with early results showing higher traffic and sales.
Share Repurchase: Announced $1 billion share buyback program set to begin in fiscal 2027.
