The American fashion group Capri Holdings Limited had to accept significant drops in sales in the third quarter of the 2024/25 financial year. Negative special effects also ensured a net loss of more than half a billion US dollars. This goes from a current interim report that the parent company of Michael Kors, Versace and Jimmy Choo published on Wednesday.
“Overall, our business remained difficult this quarter and we were disappointed with our results,” said Chairman and CEO John Idol in a statement. The group will now “examine its strategic measures to improve current sales trends”. However, Idol also explained that he expected an improvement in the results in the coming financial year. “This creates the basis for growing around 2027 and beyond.”
Sales shrinks by almost twelve percent in the third quarter
In the three months before December 28th, the corporate sales were $ 1.26 million (1.21 billion euros). In doing so, he missed the level of the previous year’s quarter by 11.6 percent. Adjusted to change course changes, the proceeds shrank by 11.4 percent.
The significant decline was due to losses in all group brands. Michael Kors’ turnover fell by 12.1 percent (currency -adjusted -11.7 percent) to $ 909 million. Versace had to accept a minus of 15.0 percent (currency -adjusted -15.0 percent) to $ 193 million, the revenues of Jimmy Choo decreased by 4.2 percent (adjusted currency -4.2 percent) to $ 159 million .
Extensive value adjustments ensure deep red numbers
The company pressed extensive values deep into the loss zone. The operational shortfall amounted to $ 590 million after a profit of $ 122 million in the same period last year.
The bottom line was a net loss of $ 547 million (525 million euros) due to the shareholders. In the third quarter of the previous year, the group had a surplus of $ 105 million. Adjusted for special effects, net profit fell by 62 percent to $ 54 million.
The future of the group is still open. After the long-planned merger with the competitor Tapestry Inc. had been stopped by a US court for competition law reasons and then canceled by both companies, Capri, according to media reports focus. The numerous interested parties in Versace include, among other things, the Italian fashion group Prada Spa and the investment company of the former Gucci-COS Marco Bizzarri.