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Investing.com -- Capri Holdings Limited reported a wider-than-expected loss for its fourth quarter as revenue declined, sending shares down in premarket trading on Wednesday.
The luxury fashion group posted an adjusted loss of $4.90 per share for the quarter ended March 29, significantly wider than analysts’ estimates of a $0.13 per share loss. The result includes a non-cash tax valuation allowance of $545 million taken against the Company’s deferred tax assets, of which $119 million was related to Versace.
Revenue fell 15.4% YoY to $1.0 billion, slightly above the consensus forecast of $999.13 million but down from $1.18 billion in the same quarter last year.
Capri, which owns brands Michael Kors, Jimmy Choo and Versace, saw declines across all three labels. Michael Kors revenue dropped 15.6% to $694 million, while Versace sales fell 21.2% to $208 million. Jimmy Choo fared slightly better with a 2.9% revenue decline to $133 million.
"Fiscal 2025 was a challenging year for Capri Holdings (NYSE:CPRI), but we are optimistic about our path forward as we enter fiscal 2026," said John D. Idol, Chairman and CEO. He noted the company is "still in the early stages of its turnaround" but seeing "positive indicators that our strategies are beginning to work."
For fiscal 2026, Capri expects revenue of $3.3 billion to $3.4 billion and earnings per share of $1.20 to $1.40. The company recently announced plans to sell Versace to Prada (OTC:PRDSY) Group for $1.375 billion in cash.
Capri ended the quarter with $166 million in cash and $1.5 billion in debt. Inventory rose 1% YoY to $869 million, which the company said reflected $60 million of earlier-than-anticipated receipts.