Capri Holdings Limited (NYSE:CPRI) shares are trading lower in the premarket session on Wednesday.
The company reported that third-quarter adjusted earnings per share was 45 cents, missing the street view of 66 cents. Quarterly sales of $1.26 billion aligned with the analyst consensus estimate.
Revenue decreased 11.6% on a reported basis and 11.4% in constant currency. Total company retail sales declined low-double-digits while wholesale revenue decreased low-teens.
Versace revenue of $193 million decreased 15% on both a reported and constant currency basis compared to prior year. Jimmy Choo revenue of $159 million decreased 4.2% on both a reported and constant currency basis compared to prior year. Michael Kors revenue of $909 million decreased 12.1% on a reported basis and 11.7% on a constant currency basis.
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Gross profit was $812 million and gross margin was 64.4%. Gross profit margin declined 60 basis points primarily due to lower full price sell-throughs.
Net inventory as of December 28, 2024, was $892 million, a 13% decrease compared to the prior year.
Cash and equivalents totaled $356 million, and total borrowings outstanding were $1.48 billion, resulting in a net debt of $1.12 billion as of December 28, versus $1.60 billion last year.
Outlook: Capri Holdings expects FY25 revenue of $4.40 billion, below the $4.51 billion estimate. Versace’s revenue is expected to be around $810 million, impacted by $10 million in foreign currency losses.
For FY26, Capri projects $4.10 billion in revenue, lower than the $4.52 billion estimate, with Versace’s revenue expected at $800 million, impacted by $25 million in foreign currency losses.
Price Action: CPRI shares are trading lower by 5.12% to $22.80 premarket at last check Wednesday.
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