"Since the termination of the merger agreement, we have reevaluated our strategic initiatives and long-term growth plans," - John Idol, CEO.
— John Idol
03Detailed Report
CPRI
Capri Holdings Limited
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
In the third quarter of fiscal 2025, Capri Holdings Limited (CPRI) faced significant challenges as it navigated a 12% decrease in total revenue year-over-year, bringing reported sales to $1.26 billion. The decline was primarily attributed to weakening demand for luxury goods globally, particularly in Asia, compounded by store optimization initiatives and strategic wholesale channel reductions. Both operating and net income fell sharply, leading to operating losses of $590 million and a net loss of $547 million, largely due to restructuring efforts and missteps in brand repositioning strategies. Management remains focused on rectifying these trends, with expectations for a gradual recovery beginning in fiscal 2026 supported by product innovation and strategic marketing initiatives.
Key Performance Indicators
Revenue
Decreasing
1.26B
QoQ: 16.87% | YoY: -11.63%
Gross Profit
Decreasing
812.00M
64.39% margin
QoQ: 17.00% | YoY: -12.50%
Operating Income
Decreasing
-590.00M
QoQ: -1 452.63% | YoY: -583.61%
Net Income
Decreasing
-547.00M
QoQ: -2 478.26% | YoY: -620.95%
EPS
Decreasing
-4.61
QoQ: -2 526.32% | YoY: -612.22%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: Revenue decreased 12% YoY due to global demand weakness; Versace, Jimmy Choo, and Michael Kors all reported declines of 15%, 4%, and 12%, respectively.
Profitability Afflictions: Gross profit margin was 64.4% (down 60 bps), with steep operational losses across all brands, reflecting higher operational expenses at 58.4% of revenue.
Balance Sheet Health: Cash at end of period was $356 million, against total debt of $1.48 billion, leading to a net debt position of approximately $1.12 billion. Inventory management showed a 13% decrease YoY to $892 million, indicating proactive steps to address oversupply.
Cash Flow Dynamics: Net cash provided by operating activities stood at $309 million, reflecting effective working capital management despite overall profit pressures. Free cash flow was down to $278 million, emphasizing the cash-generating capabilities amid a decline in profitability.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.26B
-11.63%
16.87%
Gross Profit
812.00M
-12.50%
17.00%
Operating Income
-590.00M
-583.61%
-1 452.63%
Net Income
-547.00M
-620.95%
-2 478.26%
EPS
-4.61
-612.22%
-2 526.32%
Key Financial Ratios
Gross Profit Margin
Excellent
64.40%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
-0.47%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.43%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.09%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.51%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.21
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.92
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-1.14x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
2.33x
Price-to-book ratio reasonable for profitable companies
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