Capri Holdings Posts $645M Q4 Loss as Versace Sale Nears

Capri Holdings reported a challenging fiscal year 2025 with a 14% drop in total revenue to $4.44 billion and a net loss that widened to $1.179 billion, significantly impacted by a $545 million non-cash tax valuation allowance. The company’s fourth quarter saw a 15.4% revenue decline to $1 billion and a net loss of $645 million, with all major brands experiencing sales drops: Michael Kors revenue fell 15.6%, Jimmy Choo declined 2.9%, and Versace dropped 21.2%. Capri is in the process of selling Versace to Prada Group for $1.375 billion, a move aimed at reducing debt and refocusing investment on Michael Kors and Jimmy Choo as part of a strategic turnaround. CEO John Idol remains optimistic about returning to growth by fiscal 2027 despite macroeconomic uncertainties and tariff impacts, emphasizing ongoing strategic initiatives to improve sales trends. Industry experts note that Capri’s sales declines exceed market trends, attributing the downturn partly to management challenges, with the Versace sale providing financial relief but not a complete solution.