US' Capri expects $3.4 bn revenue for FY26, clocks in $4.44 bn in FY25
American fashion conglomerate Capri Holdings has released its fiscal 2026 (FY26) guidance, projecting revenue between $3.3 billion and $3.4 billion. The operating income is expected to be around $100 million, inclusive of anticipated tariff effects.
The diluted earnings per share for FY26 are forecast between $1.20 and $1.40, based on an estimated 119 million weighted average diluted shares outstanding. Inventory levels are projected to decline in the mid-single-digit range, while capital expenditures are expected to total around $110 million.
Capri Holdings has forecast revenue of $3.3â€'$3.4 billion in FY26, with operating income of $100 million and EPS of $1.20â€'$1.40. Its Q1 revenue is expected at $765â€'$780 million. FY25 revenue fell to $4.44 billion, with a net loss of $1.18 billion. The company entered an agreement to sell Versace to Prada for $1.38 billion. Michael Kors and Jimmy Choo posted Q4 revenue declines and lower margins.
For its Michael Kors brand, Capri forecasts total revenue between $2.75 billion and $2.85 billion in FY26, with an operating margin in the high-single-digit range. Jimmy Choo is expected to generate revenue of $540 million to $550 million, with an operating margin in the negative mid-single-digit range, Capri Holdings said in a press release.
For the first quarter (Q1) of FY26, the company expects total revenue to range between $765 million and $780 million, with an operating margin projected to be approximately break-even. The net interest income is forecast at around $15 million, with an effective tax rate of about 15 per cent. The company anticipates diluted earnings per share between $0.10 and $0.15, based on roughly 119 million weighted average diluted shares outstanding.
Brand-wise, Michael Kors is expected to generate revenue between $615 million and $625 million in Q1 FY26, with an operating margin in the mid-single-digit range. Jimmy Choo is projected to contribute $150 million to $155 million in revenue, also with an operating margin around break-even.
'Fiscal 2025 was a challenging year for Capri Holdings, but we are optimistic about our path forward as we enter fiscal 2026. 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,' said John D Idol, chairman and chief executive officer (CEO) at Capri Holdings.
'Looking ahead, we continue to expect trends to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond. We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range,' added Idol.
Meanwhile, Capri Holdings reported total revenue of $4.44 billion in fiscal 2025 (FY25) ended March 29, down from $5.17 billion in FY24. The gross profit declined to $2.83 billion, while total operating expenses remained flat at $3.58 billion.
The company reported a net loss of $1.18 billion for FY25, compared to a net loss of $229 million in FY24. Basic and diluted net loss per share stood at $10, sharply up from $1.96 year-over-year (YoY).
Capri Holdings recently entered into a definitive agreement to sell Versace to Prada for $1.38 billion in cash, subject to certain adjustments. The transaction is anticipated to close in the second half of calendar 2025. From fiscal 2026 onwards, Versace will be reported as a discontinued operation, added the release.
In its fourth quarter (Q4), Capri Holdings reported a 15.4 per cent YoY decline in total revenue to $1 billion, a 14.1 per cent decline on a constant currency basis. The gross profit stood at $631 million with a gross margin of 61 per cent, down 62.7 per cent YoY.
The company recorded a loss from operations of $116 million with an operating margin falling 11.2 per cent. Adjusted loss from operations was $33 million.
The net loss widened to $645 million or negative $5.44 per diluted share. The adjusted net loss was $581 million or negative $4.90 per diluted share. The net inventory rose 1 per cent YoY to $869 million, due to $60 million in early receipts.
Brand-wise, Michael Kors has posted Q4 FY25 revenue of $694 million, down 15.6 per cent on a reported basis. Gross profit was $407 million with a margin of 58.6 per cent. The operating income fell to $32 million, with a 4.6 per cent margin compared to 14.1 per cent a Q4 FY24.
Similarly, Jimmy Choo's revenue slipped 2.9 per cent to $133 million, with gross profit of $88 million and a margin of 66.2 per cent. The brand posted an operating loss of $10 million. Versace saw revenue decline of 21.2 per cent to $208 million, gross profit of $136 million with a margin of 65.4 per cent, and an operating loss of $13 million versus a modest operating income last fiscal.
Fibre2Fashion News Desk (SG)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
2 hours ago
- Mint
Bank loan sanctions to MSMEs for job creation down nearly a third in FY25
Bank loans sanctioned to India's micro, small, and medium enterprises (MSMEs) under the Prime Minister's Employment Generation Programme (PMEGP) dipped by nearly a third to ₹12,315 crore in FY25, from ₹17,759 crore in FY24. The development assumes significance since MSMEs contribute around 29% to India's GDP. This comes in the backdrop of the government reworking its revival framework for MSMEs to ensure continuity of bank credit during their stress period. Launched in 2008 by merging Prime Minister's Rojgar Yojana and Rural Employment Generation Programme, PMEGP is a flagship credit-linked subsidy scheme of the government. Entrepreneurial demand weakens Bank loans sanctioned to MSMEs increased in FY22 in the wake of the covid-19 pandemic, and continued to increase till FY24. From FY22 to FY24, the amount of bank loans sanctioned to MSMEs nearly doubled from a little over ₹9,000 crore to nearly ₹18,000 crore, before falling to FY25 levels of ₹12,315 crore, according to data provided by the MSME ministry. Also Read: Kanpur node is key in UP Defence Corridor for indigenous manufacturing: PM Modi The dip in sanctioned loans also reflected a reduction in the number of businesses seeking credit. The number of businesses which received bank loans under the scheme in FY25 is lower than that in FY22, according to MSME ministry data. In FY25, about 1,08,923 MSMEs received loans from banks under the PMEGP, less than FY22's 1,09,127, after peaking in FY24 with 1,65,725 businesses, the data showed. Global uncertainty is likely to have doused entrepreneurial sentiment for smaller businesses in FY25, banking experts said. MSME growth is driven by domestic and global macroeconomic environment, said Vivek Iyer, partner and financial services risk leader, Grant Thornton Bharat. "FY25 has been categorized with many uncertainties ranging from geopolitical stress points in west Asia, the Russia Ukraine conflict, Sino-American rivalry, the impending US election outcome and then the subsequent outcome of the US election. When sentiment is poor, demand to start ventures is poor and hence demand for credit is poor," he said. Also Read: India remains fastest-growing economy for fourth year straight: FM Sitharaman Iyer clarified that banks had not changed their assessment criteria for MSME loans, highlighting that the dip in sanctioned bank loans is a demand-side issue, and not a supply-side problem. Access to finance still a hurdle The key objective of the PMEGP was to aid micro enterprises of self-employment ventures to provide employment to artisans and youth in both rural and urban regions. The intention of the scheme was to curb the migration of youth from rural to urban regions, the MSME ministry annual report for FY25 said. Under the scheme, the central government provides a part of the capital required to start a venture. Nearly one million micro enterprises have been assisted since the inception of the scheme till December 2024 with aid of ₹26,124 crore, providing estimated employment opportunities to over 80 lakh people, the MSME ministry FY25 annual report said. Lack of access to capital has been a key hurdle in MSME growth in India. A study by Niti Aayog and the Institute for Competitiveness in May 2025 cited Reserve Bank of India (RBI) data to show that MSMEs continued to have a small share of the credit to businesses deployed by 41 scheduled banks from 2020 to 2024. Also Read: Govt relaxes rules to boost GST registration among small businesses In September 2020, 14% of all credit deployed by these banks went to micro and small enterprises, while 4% went to medium enterprises. The situation improved by September 2024, when 20% went to micro and small enterprises, and 9% went to medium enterprises. The share of credit deployed to large businesses, however, still remained 71% in 2024, according to the data. In a 2022 World Bank Enterprise Survey, over a fifth of Indian MSMEs said access to finance is their biggest obstacle.
Mint
3 hours ago
- Mint
Pragmatic tariff adjustments with US can secure India's farm exports: NITI paper
New Delhi: India should grant more market access to American products that do not hurt Indian farmers—including apples, almonds and pistachios—for a mutually beneficial bilateral trading arrangement, according to a working paper by NITI Aayog. In turn, India could benefit from greater long-term market access for its shrimp, fish, rice, tea, coffee and rubber, the paper said as the two countries tried to wrap up a bilateral trade agreement. The paper supports a 'give and take' approach that will allow the US to lower its trade deficit with India, while also helping India to secure its farm exports. The paper, co-authored by member Ramesh Chand and senior advisor Raka Saxena, also suggests that India introduce market reforms in the farm sector and work with states in order to improve competitiveness of India's agriculture exports. Also read: Wheat procurement hits 29.7 million tonnes in 2025–26, highest in four years amid bumper crop 'India must pursue a pragmatic mix of tariff adjustments, strategic import liberalization and long-term competitiveness to safeguard its farm sector while preserving strong trade ties with the United States. With calibrated give-and-take, India can prevent large-scale disruption, avoid trade conflict and emerge as a more competitive and resilient agri-export economy," said the latest working paper from the federal policy think tank. It clarifies that authors' views are personal. India can consider lower tariffs on agricultural commodities where either domestic production is small or import does not compete with domestic production because of different quality grades and seasons, the report said, citing examples of US apples which sell at a premium price in India and products like almonds and pistachios, the demand for which is met through imports. Apples from the US now attract 50% import duty in India, while pistachios and walnuts attract 30%, the paper pointed out. The authors explained that India, which accounts for over 40% of US imports of frozen shrimp and prawn, its largest source of import, now faces a 26% tariff under the now-suspended reciprocal tariff plan, compared with the earlier zero-duty regime, potentially weakening India's price advantage if the tariffs are not averted. India is currently in trade talks with the US to avoid the tariffs announced on 2 April and suspended for three months to facilitate talks. Also read: India sets record grain production target of 354.64mt for 2025-26 Ecuador, with a lower share and lower unit value for the commodity per tonne, faces only a 10% tariff under the reciprocal tariffs, positioning it to gain from the shifting trade dynamics with the US, the report pointed out. 'As a leading supplier with over 40% market share, India stands to lose price competitiveness, especially against countries like Ecuador and Argentina, which now face only a 10% tariff. This shift could lead to reduced demand for Indian shrimp in the US unless exporters absorb part of the cost or reposition toward value-added or certified sustainable products," the report pointed out. Indonesia and Vietnam, however, stand to take a heavier hit from the reciprocal tariffs on shrimp at 32% and 46% respectively. The pause on reciprocal tariffs announced by the US has created a level playing field for now, but exporters are hoping for a permanent solution. 'We are confident that the negotiations between India and US for concluding a trade agreement would yield fruit quickly and allow import of shrimp into the US without any tariff barriers," said K.N. Raghavan, secretary general of the Seafood Exporters Association of India. Export of processed and value-added seafood has immense potential, Raghavan said, adding that more focus on this area with support from government will lead to higher exports. "We are confident that with support from government and related agencies, we will be able to double the present export turnover of $7-8 billion a year within the next five years," added Raghavan. The report said rice is the second-most important commodity exported by India to the US, commanding 27% share in its rice imports after Thailand, which controls more than half of all US import of rice. India exported rice worth $ 409 million to the US in 2024. India, now faces the threat of a 26% reciprocal tariff on rice, which would be an increase from the otherwise 0.6% tariff. This poses a moderate yet strategic challenge. India still retains a tariff advantage over Thailand, which faces a higher 36% rate. 'There is ample of scope as well as opportunity for semi-milled rice and basmati rice exports from India to US, if the trade deal is done keeping the interest of Indian farmers," said Satish Goel, president, All India Rice Exporters of India. Also read: India to revamp rice cultivation technique to save water, cut methane emissions Like exports, the composition of India's agricultural imports from the US has also undergone considerable changes during the last two decades. Edible fruits and nuts have emerged as a dominant item of agricultural imports followed by cotton and beverages and spirits. These three categories constitute 75% of total agricultural imports from US into India, the report said. By turning current challenges into reform opportunities, India can position itself as a global food power in the coming decades, the report said.
Hindustan Times
4 hours ago
- Hindustan Times
India eyes retaliation as US rejects WTO notice
The US has rejected India's May 9 notice at the World Trade Organization that proposed retaliatory action against Washington imposing steep import tariffs on steel and aluminium and said its actions were not safeguard measures, which is why it would not hold any discussion with New Delhi on the matter, people in the know said on Sunday. Under the current circumstances, India may retaliate by proportionately suspending concessions given to American imports (for example almonds and walnuts) and levy higher customs duties on metals coming from the US, said the people cited above, requesting anonymity. The Indian notice was against the US's February 10 decision to impose 25% levies on all imports of steel and aluminium effective from March 12. Now, the matter has been aggravated further as the Trump administration on May 30 doubled tariffs on the metals to 50% effective from June 4, citing national security. Against the US measure to hike import duties on steel and aluminium to safeguard American metal industries, India on May 9 formally notified WTO that it could suspend 'concessions and other obligations' granted to the US 'after the expiration of 30 days from the date of this notification', which would be June 8. Reacting to India's notice, the United States on May 22 informed WTO that India's proposed retaliation was not consistent with the multilateral trade rules. Washington said the US tariffs on metals were 'not safeguard' measures. 'Accordingly, there is no basis for India's proposal to suspend concessions or other obligations under Article 8.2 of the Agreement on Safeguards with respect to these measures,' it said in its latest communication to WTO. On grounds that the tariffs are not safeguard measures, the US also declined to discuss and resolve the dispute with India, leaving the ball in New Delhi's court. 'The United States will not discuss the Section 232 tariffs under the Agreement on Safeguards as we do not view the tariffs as a safeguard measure,' the American communication to the multilateral body added. While India's commerce ministry did not respond to a query on this matter, people in the know said India may retaliate unless the US agrees to a preferential treatment for India on these metals under the ongoing talks for an early deal (first tranche) within the proposed Bilateral Trade Agreement (BTA). Both countries are making efforts to conclude an early harvest deal by this month and a negotiating team from the US is expected to visit India this week, they said. Experts said high tariffs on steel and aluminium by the US are of critical importance to India. 'For India, the consequences are direct. In FY25, India exported $4.56 billion worth of iron, steel, and aluminium products to the US, with key categories including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. These exports are now exposed to sharply higher US tariffs, threatening the profitability of Indian producers and exporters,' said Global Trade Research Initiative (GTRI) founder and former Indian Trade Service officer Ajay Srivastava. 'India has already issued a formal notice at the WTO signalling its intention to impose retaliatory tariffs on US goods in response to the earlier steel tariffs. With (President Donald) Trump now doubling the tariffs, it remains to be seen whether India will carry out the retaliation, by increasing tariffs on certain US exports within a month,' he added. Hindustan Times reported on May 14 about India proposing to levy retaliatory import duties on American goods proportionately in response to the United States' imposing safeguard tariffs on Indian steel and aluminium. 'The safeguard measures would affect US$ 7.6 billion imports into the United States of the relevant products originating in India, on which the duty collection would be US$ 1.91 billion. Accordingly, India's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,' India's May 9 notice to WTO said. The US, however, maintained at WTO that its tariffs on steel and aluminium are based on national security considerations and not 'safeguard measures' as claimed by India. 'Such disputes at WTO are common and routine. Without an effective appellate body at the multilateral forum, disputes have no real significance,' one of the persons mentioned above said. The second person said this is a vexed issue. The previous Joe Biden administration in 2018 had imposed a 25% tariff on certain steel and a 10% levy on aluminium items on grounds of national security. That was retaliated to by India in June 2019 when it imposed customs duties on 28 US products such as almonds and walnuts, besides filing a complaint at WTO. Later, the two sides, however, decided to resolve the dispute amicably through mutually agreed solutions (MAS). Under the agreement in June 2023, the US agreed to grant market access to steel and aluminium products under the exclusion process of Section 232 of the Trade Expansion Act 1962 and India agreed to remove the additional duty (retaliatory tariffs) on certain American products. MAS is a mechanism under WTO where its members can resolve disputes amicably without going through the formal process of a settlement mechanism.
