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LONDON - Capri Holdings Limited (NYSE:CPRI), the parent company of luxury fashion brands including Versace, Jimmy Choo, and Michael Kors, has announced the upcoming departure of its Executive Vice President, Chief Financial Officer and Chief Operating Officer, Thomas J. Edwards, Jr. The announcement comes as the company, with annual revenues of $4.63 billion and an impressive gross profit margin of 64%, faces market challenges. According to InvestingPro data, the stock has declined over 53% in the past six months. Edwards will be leaving the company to pursue a new opportunity but will remain in his current role until June 20, 2025.
Following Edwards’ departure, Rajal Mehta, currently serving as the Chief Financial Officer of Michael Kors, will step in as the Interim Chief Financial Officer for Capri Holdings. Patricia Gabriel, Senior Vice President, Chief Supply Chain Officer, will continue to oversee global supply chain and operations, reporting directly to Chairman and Chief Executive Officer John D. Idol. The leadership transition comes at a crucial time, with InvestingPro reporting that 15 analysts have recently revised their earnings expectations downward, though the company is still expected to return to profitability this year.
Idol expressed his gratitude for Edwards’ contributions and leadership over the past eight years and voiced his confidence in Mehta’s ability to lead the finance team, citing his 16-year tenure with the company and comprehensive understanding of its financial operations. He also acknowledged Gabriel’s significant impact on the company’s global operations and supply chain since joining Capri in 2022.
The company has begun the search for a permanent replacement for Edwards. Mehta, who joined Michael Kors in 2008, has held various roles of increasing responsibility within the finance organization across corporate, retail, and wholesale sectors. He has been the CFO of Michael Kors since December 2024 and previously held finance roles at Toys "R" Us and Ralph Lauren. Mehta is an alumnus of New York University Stern School of Business, where he earned a Bachelor of Science in Finance.
Capri Holdings remains confident in its growth strategies and initiatives, as shared during its recent Investor Day, and believes it has the right strategies in place to return to growth. While currently trading near its Fair Value according to InvestingPro analysis, the company faces both challenges and opportunities ahead. InvestingPro subscribers have access to over 10 additional exclusive insights and detailed financial metrics to better understand the company’s potential trajectory.
This announcement is based on a press release statement and contains forward-looking statements regarding the company’s future. Actual results may differ materially due to various risks and uncertainties, as detailed in the company’s filings with the Securities and Exchange Commission.
In other recent news, Capri Holdings has announced a significant leadership change at Versace, appointing Dario Vitale as the new Chief Creative Officer, effective April 1, 2025. This move follows his tenure at Miu Miu and marks a strategic succession plan, with Donatella Versace transitioning to the role of Chief Brand Ambassador. Meanwhile, reports have surfaced that Prada is nearing a deal to acquire Versace for approximately €1.5 billion ($1.6 billion), potentially finalizing within the month. In financial updates, Capri Holdings has faced challenges, with S&P Global downgrading its credit rating to ’BB’ due to performance pressures and high leverage. The company reported an 11.6% drop in total revenue for the third fiscal quarter of 2025, with declines across its brands, including a 15% decrease for Versace. Jefferies has maintained a Hold rating for Capri Holdings, with a $21 price target, noting the company’s long-term financial targets and strategic plans for brand repositioning. Despite these challenges, Capri is investing in e-commerce, store renovations, and product development to enhance its market position. The company also aims to reduce debt and improve operating margins through various efficiency measures.
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