Capri Holdings (NYSE:CPRI) reported a larger-than-anticipated adjusted loss for its fiscal fourth quarter, as revenue declined across all three of its major luxury brands. However, the shares rose more than 5% intra-day today.
The company posted an adjusted loss of $4.90 per share for the quarter, significantly missing analyst expectations for a $0.13 loss. The result included a $545 million non-cash tax valuation allowance against deferred tax assets, with $119 million related to the Versace brand.
Revenue declined 15.4% year-over-year to $1.0 billion, slightly above the $999.13 million consensus but down from $1.18 billion a year earlier. All three brands under the Capri umbrella experienced sales declines: Michael Kors fell 15.6% to $694 million, Versace dropped 21.2% to $208 million, and Jimmy Choo declined 2.9% to $133 million.
For fiscal 2026, the company guided for revenue between $3.3 billion and $3.4 billion and EPS between $1.20 and $1.40. Capri also confirmed plans to sell Versace to Prada Group for $1.375 billion in cash, signaling a significant shift in its brand portfolio strategy.