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NEW YORK - Capri Holdings Limited (NYSE:CPRI) shares fell over 5% in premarket trading on Wednesday after the luxury fashion group reported third-quarter earnings that missed analyst estimates, as sales declined across all its brands.
The company, which owns Versace, Jimmy Choo and Michael Kors, posted adjusted earnings per share of $0.45 for the quarter ended December 28, 2024, falling short of the $0.68 expected by analysts. Revenue dropped 11.6% YoY to $1.26 billion, in line with estimates.
Capri’s results were impacted by weaker performance across its portfolio. Versace revenue fell 15% to $193 million, Jimmy Choo sales declined 4.2% to $159 million, and Michael Kors revenue dropped 12.1% to $909 million compared to the same quarter last year.
"Overall our business remained challenged during the quarter and we were disappointed with our results," said John D. Idol, Chairman and CEO of Capri Holdings. "We are reevaluating our strategic initiatives to improve current sales trends."
The company’s adjusted operating margin contracted to 6.0% from 12.1% in the prior year period, reflecting expense deleverage on lower revenue.
Looking ahead, Capri expects fiscal 2025 revenue of approximately $4.4 billion and adjusted operating income of about $100 million. For fiscal 2026, the company projects revenue of around $4.1 billion and adjusted operating income of approximately $150 million.
Capri shares were down 5.53% in premarket trading following the earnings release. The stock has fallen about 20% over the past year amid concerns about slowing luxury demand.
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