Overview
- Capri reported fourth-quarter revenue of $796 million and adjusted earnings per share of $0.22, with results released Wednesday showing sales down roughly 3.7% year over year and gross margin expanding to about 64.8%.
- For fiscal 2027 the company guided to roughly $2.15 in diluted EPS and low single-digit revenue growth, while warning first-quarter revenue will run below Street estimates and prompting investor caution.
- Management disclosed it is owed about $65 million in IEEPA tariff refunds and recognized roughly $40 million this quarter as a reduction to cost of goods sold, a one-time benefit that materially improved reported margins.
- Brand performance diverged: Michael Kors posted mid-single-digit declines as the company pursued a ‘quality of sale’ reset that cut promotions and off-price volume, while Jimmy Choo returned to growth and is targeted to regain profitability by fiscal 2027.
- Capri restarted buybacks, repurchasing about 4 million shares for $79 million, used proceeds from the Versace sale to shrink net debt, and said it will fund store refurbishments, data analytics and product discipline to try to convert stabilization into sustainable growth.