By Connor Hart

Capri Holding narrowed its loss despite reporting lower revenue in its fiscal fourth quarter, as the company took steps to stabilize its business and rein in its costs.

The owner of brands Michael Kors and Jimmy Choo posted a loss of $4 million, or 4 cents a share, for its three months ended March 28. That compares with a loss of $645 million, or $5.44 a share, in last year's comparable quarter.

Both quarters included losses from discontinued operations, after Capri sold the Versace brand to Italian fashion house Prada in December.

Stripping out certain one-time items, earnings came in at 22 cents a share. Analysts polled by FactSet expected adjusted earnings of 12 cents a share.

Quarterly revenue fell 3.7% to $796 million, just below Wall Street models for $800 million.

Revenue at Michael Kors decreased 5.5% to $656 million. The decline was partially offset by Jimmy Choo, where revenue climbed 5.3% to $140 million.

Cost of goods sold fell 16% to $280 million.

Chief Executive John Idol said deliberate actions Capri has taken to strengthen product innovation, brand desirability and consumer engagement are paying off. "Early validation of our strategic initiatives and improving trends across both brands reinforce our confidence in their return to revenue and earnings growth," he said.

For the coming year, Capri guided for earnings of about $2.15 a share on revenue of roughly $3.53 billion in its fiscal 2027. Analysts were looking for earnings of $1.84 a share on revenue of $3.53 billion.

The company also expects to receive a roughly $65 million tariff refund this year.

"Longer term we expect to grow Michael Kors revenue to $4 billion and Jimmy Choo revenue to $800 million while significantly increasing profitability," Idol added.

For the current quarter, Capri expects earnings of about 40 cents a share, ahead of analyst views for 31 cents a share. Revenue is projected to come in at about $750 million, compared with Wall Street models for $790.9 million.

Shares climbed 3.6%, to $19.17, in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 27, 2026 07:24 ET (11:24 GMT)

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