Overview
- Capri said the Versace divestiture is expected to close in fiscal Q3, sharpening its focus on Michael Kors and Jimmy Choo.
- Second-quarter revenue came in at $856 million, down 4.2% in constant currency, with an adjusted loss of $0.03 per share versus expectations for a profit.
- Gross margin declined to 61% with tariffs reducing the rate by about 130 basis points, and the operating loss widened to $12 million.
- Michael Kors generated $725 million in revenue (down about 3.3% in constant currency) and Jimmy Choo $131 million (down about 9.3%), with the Americas down 7% and Asia up 12%.
- The board approved a three-year share repurchase program of up to $1 billion to begin in fiscal 2027, as management maintained full-year revenue guidance and targets a return to growth next year.