Capri’s Fresh Start: Turns a Profit and Slashes Debt Following Versace Sale

Capri cleans up its accounts after the sale of Versace. The U.S. company has ended the first nine months of the year returning to black numbers in the period, while reducing its debt to only eighty million dollars, thus gaining space for the development of Michael Kors and Jimmy Choo.

The group, which last year completed the sale of Versace to Prada for $1.37 billion, has managed to reduce its debt from more than $1.6 billion at the end of the previous quarter.

“We recently completed the sale of Versace, a thoughtful decision to strengthen our financial base, ensure our flexibility to support the strategic initiatives of Michael Kors and Jimmy Choo and enhance long-term shareholder value,“ said John D. Idol, chairman and CEO. The proceeds from the sale were used to reduce indebtedness.

The company ended the first nine months of the year with a net income of $141 million, compared to a loss of $535 million in the same period last year. Gross profit amounted to $1.647 billion, down 6.21% compared to the first nine months of 2024.

Capri ended the first nine months of the year with a net income of $141 million, compared to a loss of $535 million 

In the first three quarters of the current financial year, Capri posted a turnover of $2.67 billion, a drop of 4.15% compared to 2,794 million dollars for the same period last year. In the third quarter, the group’s sales also fell by 4.03% to $1.025 billion.

Of total sales, $858 million were generated by Michael Kors, which posted a decline of 5.6% compared to the third quarter of 2024. The brand’s gross profit was also down at $512 million, compared with $569 million in the third quarter of 2025. The brand’s gross margin stood at 59.7%, down almost three points.

Jimmy Choo, on the other hand, posted a 5% sales increase in the third quarter of the current fiscal year, to $167 million. With a gross profit of $111 million, Jimmy Choo’s gross margin stood at 66.5%.

For the full year, the company anticipates sales of between $3.45 billion and $3.475 billion, with operating income of around $100 million. “Looking ahead, we remain confident that our strategies will support a return to growth in fiscal 2027, as well as lay the foundation for sustainable performance in the future,“ the CEO said.