Capri Holdings Ltd. stock fell after Luxury Apparel and Accessories Company provided guidance beyond Wall Street’s expectations.
Michael Kors’ parents, Versace and Jimmy Chew Brand are hoping to earn $4.4 billion in revenue in 2025, below the average analyst estimate of $4.5 billion. The adjustments to earnings per share for the quarter ended December 28th also missed expectations.
Stocks fell 2.3% at 7:56am in pre-market trading in New York. The S&P Midcap 400 index rose 16% and the S&P Midcap 400 index rose 16%, but the stock fell about half until the end of Tuesday.
Chief Executive John Idol expressed his disappointment at the results in a revenue statement on Wednesday. “We expect our performance to return to growth since fiscal year 2027,” he added.
The company looks at its revenue for fiscal year 2026 at $4.1 billion, and it is below analyst estimates.
Capri and Coach owner Tapestry Inc. ended its $8.5 billion plan to merge in November after the judge agreed to oppose the Federal Trade Commission’s deal. This decision was added to the issue of Capri as sales were struggling with Versace and Michael Kors brands.
“In our view, we desperately need tack changes, like shuffling in the management suite,” writes Neil Saunders, managing director of GlobalData. That growth will not resume until 2027 is a signal that much of the work hasn’t started yet,” he added.
By Tonya Garcia
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