Capri Holdings has had to admit a double-digit sales drop in its latest quarter. The parent company of Versace, Jimmy Choo and Michael Kors admitted that poor strategic decisions have impacted its performance.
Uncertain future
The American fashion group saw its sales fall 11.6 % to 1.26 billion dollars (1.2 billion euros) in the third quarter of its financial year 2024/25. The net loss further increased to 547 million dollars (510 million euros).
Versace even suffered a 15 % drop in sales to 193 million dollars (180 million euros): that was at least partly due to wrong strategic choices, CEO John Idol admits. Michael Kors also suffered a severe sales drop (-12.1 % to 909 million dollars or 850 million euros), while Jimmy Choo was able to limit the damage with ‘just’ a 4.2 % sales decrease to 159 million dollars (150 million euros).
At the same time, the future of the fashion group remains uncertain following the failure of its proposed merger with Tapestry, which was blocked by Unuted States regulators. Since then, rumours of a possible sale of Versace and Jimmy Choo have been circulating, with Prada and the investment company of former Gucci CEO Marco Bizzarri, among others, mentioned as potential buyers.
