Capri Holdings Swings Back to Profit in Q1, Despite a 6% Sales Dip

Capri Holdings is beginning to see green shoots. The U.S. fashion group, owner of Michael Kors and Jimmy Choo, has concluded the first quarter of the year in the black. The good performance of the company, which in February closed the sale of Versace to Prada in a deal worth more than one billion dollars, comes despite a drop in sales.

Specifically, the U.S. holding company closed the first three months (period ending June 28th) with a turnover of $797 million, 6% less than in the same period of the previous year. The company’s gross profit also fell, from $535 million to $502 million in the current financial year.

Despite this, and as a result of the restoration strategy being pursued by the conglomerate, Capri has returned its profit sheet to positive figures: the company earned $53 million in the quarter, compared with a loss of $14 million in the previous year.“Although it is still very early days, we are starting to see the first signs that our strategies are working,“ celebrated John D. Idol, the group’s chairman and CEO.

Capri Holdings expects to return to growth in fiscal 2027

Within the Capri portfolio, Michael Kors remains the main driver of the group’s business, despite having reduced its turnover by 5.9% to $635 million. A large part of sales were in the Americas region ($413 million), compared to 150 million and 72 million dollars sold by Michael Kors in Europe, Africa and the Middle East and Asia, respectively.

Jimmy Choo’s sales, meanwhile, fell another 6.3% to $162 million, down from $173 million in the same quarter of the previous year. Unlike Michael Kors, Jimmy Choo accumulated a large part of its turnover, $78 million, in Europe, Africa and the Middle East, while in America it invoiced $46 million and in Asia another $38 million.

The group’s forecasts for the year, the first that the company will complete without Versace in its portfolio, are for a turnover of between $3.30 billion and $3.40 billion, with Michael Kors contributing between $2.75 billion and $2.85 billion.

“Looking ahead, and with the sale of Versace expected to close in the second half of 2025, we will focus on executing the strategic initiatives in our two brands, Michael Kors and Jimmy Choo,“ Idol said, while marking 2027 as the year in which the group will return to growth.