The US fashion group Capri Holdings Limited suffered losses in sales in the third quarter of the 2025/26 financial year, but was able to return to profitability. Overall, the current results, which the company published on Tuesday, exceeded the expectations of management and analysts.
In the most recent quarter, which ended on December 27, sales from continuing operations – i.e. excluding the contributions from the Versace brand, whose sale to the fashion group Prada SpA was completed at the beginning of December – amounted to around 1.02 billion US dollars (869 million euros). This corresponded to a decline of 4.0 percent compared to the same period last year. Adjusted for exchange rate changes, revenue fell by 5.9 percent.
The decline in consolidated sales was due to losses at the core brand Michael Kors. In the third quarter, its revenue fell by 5.6 percent (-7.3 percent at constant currency) to $858 million. The shoe label Jimmy Choo, on the other hand, achieved an increase of 5.0 percent (currency-adjusted +1.9 percent) to 167 million US dollars.
Unexpectedly high burdens due to the latest customs developments caused the gross margin, which had been 63.1 percent in the same quarter of the previous year, to slip to 60.8 percent. However, due to lower one-time charges, operating profit from continuing operations increased from $26 to $46 million. Adjusted for special items, operating profit fell from $97 million to $79 million.
The group wants to maintain its strategic course
Net income from continuing operations jumped from $6 million to $57 million. Adjusted for special effects, it increased from 74 to 98 million US dollars. The reported quarterly profit attributable to shareholders was 116 million US dollars (98 million euros), after the group had to accept a corresponding deficit of 547 million US dollars in the same period of the previous year, not least due to extensive value adjustments at Versace.
Chairman and CEO John Idol praised the surprisingly solid numbers. “We are very satisfied with our results in the third quarter, which exceeded our expectations,” he emphasized in a statement and reiterated the group’s course. “At both Michael Kors and Jimmy Choo, we continue to advance our strategic actions to position our unique brands for long-term success,” said Idol.
Based on the current figures, management slightly increased its sales forecast. For the current 2025/26 financial year, it now expects sales from continuing operations to be between $3.45 and $3.475 billion. The target for operating profit from continuing operations adjusted for special items remained unchanged. It remains at around $100 million.
