Q4 EPS includes a non-cash tax valuation allowance of $545M taken against the company’s deferred tax assets, of which $119M was related to Versace. Reports Q4 revenue $1.0B, consensus $989.05M. CEO John Idol said, “FY25 was a challenging year for Capri Holdings (CPRI), but we are optimistic about our path forward as we enter FY26. While there is uncertainty around the impact of tariffs on the global economic environment, we remain focused on executing against our new strategic initiatives that are designed to return Capri Holdings to future growth. The company is still in the early stages of its turnaround and we are seeing positive indicators that our strategies are beginning to work. As previously announced, we entered into a definitive agreement to sell Versace to Prada Group. This transaction positions us to invest in our future growth, substantially reduce our debt levels and reinstate a share repurchase program in the future. With our new strategies in place, a focused senior leadership team, and a strong balance sheet we are well positioned to improve performance of both Michael Kors and Jimmy Choo. Looking ahead, we continue to expect trends to improve throughout FY26 positioning us to return to growth in FY27 and beyond. We are confident in our ability to grow Michael Kors to $4B in revenue and Jimmy Choo to $800M over time, while restoring operating margin to the double-digit range.”
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