The US fashion group Capri Holdings Limited also suffered losses in sales in the fourth quarter of the 2025/26 financial year. However, thanks to extensive reforms, the company was able to make significant progress in terms of earnings. For the current year, management is now also promising sales growth again.
In the final quarter of the past financial year, which ended on March 28, group sales from continuing operations – i.e. excluding the contributions from the fashion house Versace, which has since been sold to the Prada Group – amounted to 796 million US dollars (684 million euros). This corresponded to a decrease of 3.7 percent compared to the same period last year. Adjusted for exchange rate changes, revenue fell by 7.0 percent.
Sales of the core brand Michael Kors fell by 5.5 percent (-8.4 percent at constant currency) to 656 million US dollars. The revenue of the shoe label Jimmy Choo, however, increased by 5.3 percent to 140 million euros. Adjusted for currency effects, they remained roughly constant.
The group is making further progress in terms of earnings
The gross margin, which was 59.9 percent in the same quarter of the previous year, increased to 64.8 percent, not least due to the expected reimbursement of unlawful customs duties. This increase, along with cost savings, helped reduce operating loss from continuing operations from $57 million to $27 million.
The reported net loss attributable to shareholders, which had reached $645 million in the same quarter last year, was reduced to $4 million (€3 million). Continuing operations posted a profit of $1 million, after posting a net loss of $579 million in the same period last year.
In the entire 2025/26 financial year, consolidated sales from continuing operations fell by 4.1 percent (-6.2 percent adjusted for currency effects) to $3.47 billion. Net profit attributable to shareholders was $137 million, after the group posted a corresponding loss of $1.18 billion in the previous year.
Management is forecasting increases in sales and earnings for the current financial year
Chairman and CEO John Idol highlighted the “encouraging progress” the group has made in implementing its strategic initiatives over the past year. After the sale of Versace, strengthening the two remaining brands is at the forefront of the strategy. Among other things, “targeted measures” were introduced to “strengthen product innovation, the attractiveness of the brands and customer loyalty,” said Idol. The group now sees “clear signs that these efforts are being well received by consumers.” Thanks to the improving trends in both brands, management has “confidence in the return to sales and profit growth,” emphasized the CEO.
For the current 2026/27 financial year, the group expects sales to grow to around $3.252 billion. Net profit per share, adjusted for special items, is expected to increase by around 40 percent to around $2.15.
