For the quarter ending in December, Capri reported a net income of $116 million, or 96 cents per share, a sharp reversal from the $547 million loss recorded during the same period last year. This recovery was largely driven by the sale of Versace to Italian fashion house Prada, which closed in December. On an adjusted basis, the company earned 81 cents per share, beating the FactSet consensus of 78 cents.

Performance across the portfolio remained mixed. Revenue at Michael Kors, the group’s largest label, fell 5.6% to $858 million as the brand continues to navigate a challenging retail environment. Conversely, Jimmy Choo provided a bright spot, with revenue climbing 5% to $167 million. However, rising expenses continue to weigh on the bottom line, with the total cost of sales increasing 2% to $402 million.

Strategic Outlook and Market Headwinds

Looking forward, Capri expects full-year revenue to land between $3.45 billion and $3.475 billion, with Michael Kors projected to contribute the vast majority of that total. CEO John Idol indicated that the company’s current strategy is designed to facilitate a return to growth by fiscal 2027, though the path remains narrow as the company manages its core assets.

The earnings report comes at a precarious time for the luxury group. Capri was recently identified as a major creditor in the bankruptcy filing of Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus. Furthermore, Capri’s stock performance continues to trail behind competitors like Tapestry, the owner of Coach, as investors weigh the company's ability to balance mass-market reach with luxury exclusivity.