Capri Holdings Ltd. Q4 FY2025 earnings call

• Announced pending sale of Versace to Prada Group, focusing resources on Michael Kors and Jimmy Choo.
• Michael Kors: Fourth quarter revenue down 16%, but saw encouraging signs from new brand storytelling and product initiatives. Plan to renovate ~50% of stores over 3 years. First quarter trends show improvement in consumer database, door traffic, and AUR.
• Jimmy Choo: Fourth quarter revenue down 3%, focus on engaging consumers, growing accessories, enhancing store productivity, and stabilizing wholesale. Strong performance in new accessory styles like diamond and cinch bags.

Michael Kors: Fourth quarter revenue decreased 16% compared to the prior year. Global retail sales decreased mid-teens while wholesale declined double digits. By geography, sales in the Americas decreased 12%, revenue in EMEA declined 15%, and revenue in Asia decreased 31%. Jimmy Choo: Fourth quarter revenue decreased 3% compared to the prior year. Global retail sales declined high single digits and wholesale increased high teens. By geography, total revenue in the Americas decreased 7%, revenue in EMEA increased 9%, and revenue in Asia declined 16%.

• Fiscal 2026 total company revenue expected between $3.3 and $3.4 billion. Michael Kors revenue expected $2.75-$2.85 billion, Jimmy Choo revenue $540M-$550M. Gross margin ~61%-61.5%. Operating expense ~$2 billion.
• First quarter 2026 total company revenue expected $765M-$780M. Michael Kors revenue $615M-$625M, Jimmy Choo revenue $150M-$155M.

• Uncertainty around tariffs, expected to impact cost of goods sold by ~$60M in fiscal 2026 on unmitigated basis. Fluctuating foreign currency exchange rates.

Q: Simeon Siegel asks about revenue troughing expectations and margin degradation.

A: John Idol talks about revenue improvement in Michael Kors retail, Tom Edwards discusses gross margin and tariffs.

Q: Brooke Roach asks about wholesale outlook for Michael Kors.

A: John Idol talks about positive partner response, Amazon launch success, and future wholesale growth.

Q: Katie asks about driving traffic and conversion.

A: John Idol talks about marketing initiatives, storytelling, data analytics, and influencer programs.

Q: Jay Sole asks about strategies to improve Michael Kors sales trajectory.

A: John Idol talks about brand positioning, pricing, and brand relevance.

Q: Anisha Sherman asks about pricing strategy.

A: John Idol talks about pricing steady state by fall, outlet channel price changes, and tariff-related price increases with caution.