Capri Holdings, the parent company of luxury brands Michael Kors, Versace, and Jimmy Choo, has unveiled its long-term financial targets, projecting significant growth for each brand over the next several years. This announcement comes as the company continues to explore strategic options for Versace and Jimmy Choo, following the failed acquisition attempt by Tapestry Inc.
Capri Holdings Ltd., the parent company of luxury brands Michael Kors, Versace , and Jimmy Choo, unveiled its long-term financial targets on Wednesday morning at its 2025 Investor Day in New York. John D. Idol, chairman and chief executive officer of Capri, expressed optimism about the future growth potential of their brands, citing their enduring value and proven resilience. He emphasized the company's confidence in delivering consistent revenue and earnings growth over time.
This announcement comes amidst speculation that Capri has been exploring potential buyers for both Versace and Jimmy Choo since last December, following the failed $8.5 billion buyout attempt by Tapestry Inc. in November.For fiscal year 2025, Capri projects total revenue to reach $4.4 billion, with an estimated $4.1 billion in FY 2026, followed by $4.4 billion in FY 2027, $4.7 billion in FY 2028, and ultimately reaching $6.3 billion in the future. Breaking down revenue projections by brand, Capri anticipates $3 billion in sales for Michael Kors in FY 2025, followed by $2.75 billion in FY 2026, $2.75 billion in FY 2027, $3 billion in FY 2028, and $4.08 billion in the future. Versace is projected to generate $810 million in FY 2025, increasing to $800 million in FY 2026, $850 million in FY 2027, $900 million in FY 2028, and eventually reaching $1.5 billion in the future. Jimmy Choo's projected revenue stands at $600 million in FY 2025, followed by $550 million in FY 2026, $575 million in FY 2027, $600 million in FY 2028, and $800 million in the future.The provided guidance is based on an adjusted, non-GAAP basis. Capri cautions that actual financial results might deviate significantly from these projections due to external factors not currently reflected in the outlook. These factors include fluctuations in global macroeconomic conditions, potentially higher-than-anticipated inflationary pressures or a decline in consumer confidence, and substantial changes in foreign exchange rates. The company's recent performance, as reported for the third quarter ended December 28, revealed a net loss of $547 million, or $4.61 per diluted share, a sharp contrast to earnings of $105 million, or 88 cents, in the previous year. Sales declined by 12.1 percent to $909 million, with Versace experiencing a 15 percent drop to $193 million and Jimmy Choo recording a 4.2 percent decrease to $159 million. During an analyst call in November, John Idol addressed the possibility of strategic alternatives for Choo and Versace. He reaffirmed the company's commitment to rebuilding all three brands and putting them on a growth trajectory, ultimately aiming to create value for shareholders through revenue growth, operating margin growth, and net income growth.
CAPRI HOLDINGS MICHAEL KORS VERSACE JIMMY CHOO LUXURY BRANDS FINANCIAL TARGETS GROWTH PROJECTIONS STRATEGIC OPTIONS ACQUISITION INVESTOR DAY
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