Capri Holdings Raises Full-Year Outlook After Profit Surge

Capri Holdings reported a sharp increase in net income to $56 million from $5 million a year earlier, and adjusted earnings per share of 50 cents, significantly surpassing analyst expectations. While net revenue fell 6% to $797 million, the decline was less than anticipated, reflecting resilient demand for the company's Michael Kors and Jimmy Choo brands despite a challenging retail environment. The company raised its full-year revenue outlook and forecasted second-quarter revenue above market estimates, citing progress in its turnaround strategy, cost-cutting measures, and the planned sale of the Versace label to Prada. Investor confidence was buoyed, as reflected in a notable rise in Capri's share price after the announcement. CEO John Idol emphasized ongoing efforts to stabilize the business in 2025 and projected a return to growth in fiscal 2027. Capri continues to face challenges from tariffs and prior sales declines but plans to mitigate these through price increases and operational efficiencies.