The Company Disclosed Its Renewed Financial Goals, Including for Brands Versace and Jimmy Choo
Capri Holdings Ltd., the parent company of Michael Kors, Versace, and Jimmy Choo, unveiled its long-term financial goals on Wednesday morning, ahead of its 2025 Investor Day in New York.
John D. Idol, chairman and chief executive officer of Capri, expressed his optimism about the future. “We are optimistic about the long-term growth potential for Versace, Jimmy Choo and Michael Kors as we execute our strategic initiatives. Our powerful brands have enduring value and proven resilience, reinforcing our confidence in their ability to deliver revenue and earnings growth over time,” Idol stated.
Reports from last December suggested that Capri was exploring the sale of the Versace and Jimmy Choo brands. This came after a potential $8.5 billion acquisition by Tapestry Inc. fell through in November due to an antitrust challenge by the U.S. government.
Capri projects a total revenue of $4.4 billion for fiscal year 2025, with expectations for the subsequent years: $4.1 billion in FY 2026, returning to $4.4 billion in FY 2027, increasing to $4.7 billion in FY 2028, and reaching $6.3 billion in later years.
For its largest business, Michael Kors, the company forecasts revenues of $3 billion in FY 2025, with a slight decrease to $2.75 billion in FY 2026, maintaining through FY 2027, and rising to $3.2 billion in FY 2028, with future revenues expected to hit $4.08 billion.
Versace’s revenues are anticipated to be $810 million in FY 2025, with a slight reduction to $800 million in FY 2026, before increasing steadily to $850 million in FY 2027, $900 million in FY 2028, and $1.5 billion in future years.
Jimmy Choo is expected to generate $600 million in FY 2025, decreasing to $550 million in FY 2026, then gradually rising to $575 million in FY 2027, $600 million in FY 2028, and eventually $800 million.
These financial projections were given on an adjusted, non-GAAP basis. Capri noted that actual financial outcomes could vary significantly due to external factors not accounted for in this guidance, such as global macroeconomic changes, higher than expected inflation, loss of consumer confidence, and significant fluctuations in foreign currency exchange rates.
For the third quarter ending December 28, Capri reported a net loss of $547 million, or $4.61 per diluted share, a significant decline from a profit of $105 million, or 88 cents per share, the previous year. Revenue for the quarter fell 11.6% to $1.26 billion. Specifically, Michael Kors’ sales decreased by 12.1% to $909 million, Versace sales declined 15% to $193 million, and Jimmy Choo sales fell 4.2% to $159 million.
In a November analyst call, when asked about potential strategic alternatives for Choo and Versace, Idol said, “We’re a public company. We have always been open to conversations with any company that has an interest in any of our assets, as we would always do and always have done. Our first commitment is to rebuild all three of these houses to get them on a growth trajectory and to create value for our shareholders through revenue growth, through operating margin growth and ultimately through net income growth,” Idol explained.