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The diluted earnings per share for FY26 are forecast between $1.20 and $1.40, based on an estimated 119 million weighted average diluted shares outstanding. Inventory levels are projected to decline in the mid-single-digit range, while capital expenditures are expected to total around $110 million.
Capri Holdings has forecast revenue of $3.3–$3.4 billion in FY26, with operating income of $100 million and EPS of $1.20–$1.40.
Its Q1 revenue is expected at $765–$780 million.
FY25 revenue fell to $4.44 billion, with a net loss of $1.18 billion.
The company entered an agreement to sell Versace to Prada for $1.38 billion.
Michael Kors and Jimmy Choo posted Q4 revenue declines and lower margins.
For its Michael Kors brand, Capri forecasts total revenue between $2.75 billion and $2.85 billion in FY26, with an operating margin in the high-single-digit range. Jimmy Choo is expected to generate revenue of $540 million to $550 million, with an operating margin in the negative mid-single-digit range, Capri Holdings said in a press release.
For the first quarter (Q1) of FY26, the company expects total revenue to range between $765 million and $780 million, with an operating margin projected to be approximately break-even. The net interest income is forecast at around $15 million, with an effective tax rate of about 15 per cent. The company anticipates diluted earnings per share between $0.10 and $0.15, based on roughly 119 million weighted average diluted shares outstanding.
Brand-wise, Michael Kors is expected to generate revenue between $615 million and $625 million in Q1 FY26, with an operating margin in the mid-single-digit range. Jimmy Choo is projected to contribute $150 million to $155 million in revenue, also with an operating margin around break-even.
“Fiscal 2025 was a challenging year for Capri Holdings, but we are optimistic about our path forward as we enter fiscal 2026. While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The company is still in the early stages of its turnaround, and we are seeing positive indicators that our strategies are beginning to work,” said John D Idol, chairman and chief executive officer (CEO) at Capri Holdings.
“Looking ahead, we continue to expect trends to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range,” added Idol.
Meanwhile, Capri Holdings reported total revenue of $4.44 billion in fiscal 2025 (FY25) ended March 29, down from $5.17 billion in FY24. The gross profit declined to $2.83 billion, while total operating expenses remained flat at $3.58 billion.
The company reported a net loss of $1.18 billion for FY25, compared to a net loss of $229 million in FY24. Basic and diluted net loss per share stood at $10, sharply up from $1.96 year-over-year (YoY).
Capri Holdings recently entered into a definitive agreement to sell Versace to Prada for $1.38 billion in cash, subject to certain adjustments. The transaction is anticipated to close in the second half of calendar 2025. From fiscal 2026 onwards, Versace will be reported as a discontinued operation, added the release.
In its fourth quarter (Q4), Capri Holdings reported a 15.4 per cent YoY decline in total revenue to $1 billion, a 14.1 per cent decline on a constant currency basis. The gross profit stood at $631 million with a gross margin of 61 per cent, down 62.7 per cent YoY.
The company recorded a loss from operations of $116 million with an operating margin falling 11.2 per cent. Adjusted loss from operations was $33 million.
The net loss widened to $645 million or negative $5.44 per diluted share. The adjusted net loss was $581 million or negative $4.90 per diluted share. The net inventory rose 1 per cent YoY to $869 million, due to $60 million in early receipts.
Brand-wise, Michael Kors has posted Q4 FY25 revenue of $694 million, down 15.6 per cent on a reported basis. Gross profit was $407 million with a margin of 58.6 per cent. The operating income fell to $32 million, with a 4.6 per cent margin compared to 14.1 per cent a Q4 FY24.
Similarly, Jimmy Choo’s revenue slipped 2.9 per cent to $133 million, with gross profit of $88 million and a margin of 66.2 per cent. The brand posted an operating loss of $10 million. Versace saw revenue decline of 21.2 per cent to $208 million, gross profit of $136 million with a margin of 65.4 per cent, and an operating loss of $13 million versus a modest operating income last fiscal.
Fibre2Fashion News Desk (SG)
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