The American fashion group Capri Holdings Limited exceeded expectations in the first quarter of the 2025/26 financial year. The company had to accept a significant decline in sales, but due to significantly lower costs, it could show a profit, unlike in the same period in the previous year. This emerges from current results published on Wednesday.
In the opening quarter, which was completed on June 28th, sales were from continued business areas-i.e. without the Versace brand’s contributions, whose sale was agreed to the Fashion Group Prada Spa in mid-April-at $ 797 million ($ 686 million). He fell by 6.0 percent compared to the same period last year. Adjusted to change course changes, the proceeds shrank by 7.7 percent.
Cost reductions inspire the result
The two brands remaining after the Versace sales in the group portfolio had to accept losses. Michael Kors’ turnover fell by 5.9 percent (currency -adjusted -7.3 percent) to $ 635 million, the revenues of Jimmy Choo decreased by 6.4 percent (currency -adjusted -9.2 percent) to $ 162 million.
Due to significantly lower costs, the group was able to increase its operational profit, which had been at eleven million US dollars in the same period in the previous year, to $ 16 million. The bottom line was a net profit of $ 53 million (46 million euros) due to the shareholders. In the previous year, the group of companies had had a corresponding deficiency of $ 14 million due to the losses of Versace. The net profit from continued business areas increased from five to $ 56 million.
CEO John Idol sees progress in strategic initiatives
Chairman and CEO John Idol saw the present results as confirmation of the strategic course: “We feel encouraged by our results in the first quarter. The trends have continuously improved, so that both sales and profit per share have exceeded our expectations,” he said in a statement. “These results show what progress we make when implementing our strategic initiatives to revitalize our luxury fashion houses. It is still early, but we see the first signs that our strategies work.”
In view of the latest development, management easily raised its sales forecast for the current financial year 2025/26. It now expects sales in the range of 3.375 to 3.45 billion. The result goals remained unchanged. An operational profit of around $ 100 million and a diluted profit per share between $ 1.20 and $ 1.40 is still expected.