Capri Holdings Ltd. shares dropped after the luxury apparel and accessories company gave guidance below Wall Street expectations, saying a turnaround will take time.
The parent to Michael Kors, Versace and Jimmy Choo brands expects fiscal 2025 revenue of $4.4 billion, below the $4.5 billion average analyst estimate. Adjusted earnings per share in the quarter ended Dec. 28 also missed expectations.
The shares fell 2.3 percent at 7:56 AM in premarket trading in New York. The stock declined by about half over the 12 months through Tuesday’s close, while the S&P Midcap 400 Index gained 16 percent.
Chief executive officer John Idol expressed disappointment with the results in an earnings statement on Wednesday. “We expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond,” he added.
The company sees fiscal 2026 revenue of $4.1 billion, also below the analyst estimate.
Capri and Coach owner Tapestry Inc. ended their $8.5 billion plan to merge in November after a judge’s agreed with the Federal Trade Commission’s opposition to the deal. The decision added to Capri’s problems, as sales had been struggling at the Versace and Michael Kors brands.
“In our view, a change of tack is desperately needed, as is some shuffling in the management suite,” wrote Neil Saunders, managing director at GlobalData. That growth won’t resume until fiscal 2027 “is a signal that much of the work has not yet even started,” he added.
By Tonya Garcia
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