Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the ...
Capri Holdings Limited (NYSE: CPRI) is a consumer-cyclical luxury fashion company built around a multi-brand portfolio. The group’s primary brands are Michael Kors and Jimmy Choo, which together span categories such as ready-to-wear apparel, handbags and small leather goods, shoes, eyewear, watches, jewelry, fragrances, and select home-related products. In practice, ...Capri Holdings Limited (NYSE: CPRI) is a consumer-cyclical luxury fashion company built around a multi-brand portfolio. The group’s primary brands are Michael Kors and Jimmy Choo, which together span categories such as ready-to-wear apparel, handbags and small leather goods, shoes, eyewear, watches, jewelry, fragrances, and select home-related products. In practice, Capri’s value creation comes from brand building—design leadership, merchandising, and disciplined distribution—combined with manufacturing/outsourcing scale and ongoing product refresh cycles.
Business model and channels: Capri designs and markets products, then distributes them through a combination of owned/partner boutiques, department and specialty stores, and e-commerce sites. This omnichannel approach helps the company reach customers globally while adapting to regional demand. In addition to direct distribution of branded products, Capri also participates in licensing arrangements for categories such as watches, jewelry, eyewear, and fragrances, enabling third parties to manufacture and sell certain product lines while Capri benefits from brand equity, royalties, and reduced direct capital intensity.
Cost structure / operations (typical for fashion luxury retailers): Key cost drivers include (1) product development and design, including brand-specific creative direction; (2) sourcing and manufacturing costs for materials such as leather, textiles, metals, and specialty components; (3) inventory management—fashion is seasonal, so demand forecasting, markdown management, and working-capital control are central to profitability; (4) distribution and logistics (warehousing, shipping, duties/tariffs where applicable); and (5) marketing and sales efforts to sustain brand awareness and traffic. Because fashion merchandise is highly inventory-dependent, the bill of materials (BOM) varies by collection and product category (e.g., leather/outer materials, hardware, linings, packaging, and component sourcing), and therefore gross margin and cash conversion are influenced by mix and inventory turns.
Financial and market context: The company’s market metrics (e.g., market capitalization and enterprise value reported by data providers) reflect its positioning in luxury apparel and its sensitivity to consumer spending and inventory cycles. As with many branded retailers, profitability is influenced by seasonal sales timing, promotional intensity, and cost discipline.
Key leadership and people: John D. Idol serves as Chief Executive Officer (and Chairman) and is a long-tenured leader at the company. Capri has also emphasized corporate impact initiatives (e.g., Capri Cares and the Corporate Foundation) that support sustainability and community programs aligned with brand values.
Wishes / direction (inferred from business priorities): Capri’s ongoing focus is to maintain brand desirability while balancing inventory levels, strengthening e-commerce and international growth, and leveraging licensing where it increases efficiency and extends brand reach without requiring equivalent direct production investment.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.5B
-21.8%
-3.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$92.0M
+107.8%
+1825.0%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+58.9%
-7.4%
+6.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.4%
+113.9%
+351.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.6%
+110.0%
+1885.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$14.0M
-90.8%
+157.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+0.4%
-88.3%
+159.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
1775.0%
+110.5%
-43.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.21x
+6.2%
-1.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to the Capri Holdings Limited First Quarter Fiscal 2027 Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Jennifer Davis, Vice President of Investor Relations. Thank you, Jennifer. You may begin.
Jennifer Davis: Good morning, everyone, and thank you for joining us on Capri Holdings Limited First Quarter Fiscal '27 Conference Call. With me this morning are John Idol, Capri's Chairman and Chief Executive Officer; and Tyler Reddien, Capri's Chief Financial and Chief Operating Officer. Before we begin, let me remind you that certain statements made on today's call may constitute forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ from those we expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that the statements made during this call will remain operative at a later time, and the company undertakes no obligation to update any information discussed on today's call. Unless otherwise noted, all financial information on today's call will be presented on a non-GAAP basis. These non-GAAP measures exclude certain items associated with store renovation plan costs, transaction-related costs, Capri transformation costs as well as restructuring and other charges. To view the corresponding GAAP measures and related reconciliation, please review our latest earnings release posted to our website earlier today at capriholdings.com. Now I would like to turn the call over to Mr. John Idol, Chairman and Chief Executive Officer. John?
John Idol: Thank you, Jennifer, and good morning, everyone. We are encouraged by our first quarter results, which exceeded our expectations and demonstrated the progress we are making to build a stronger and more profitable business. Our strategic initiatives across both Michael Kors and Jimmy Choo are driving deeper consumer engagement through enhanced brand storytelling and compelling product innovation. As we look at the balance of fiscal '27, we expect to make further progress executing against our strategic initiatives. First, strengthening brand desirability through compelling storytelling that deepens emotional connections and resonates with both new and existing consumers. Second, creating exciting luxury fashion product that reflects each brand's heritage while clearly leading with design and innovation. Third, delivering elevated and differentiated customer experiences across all touch points, including digital, stores and wholesale. Fourth, leveraging our data analytics across the consumer journey to gain deeper insights and drive more personalized interactions. And fifth, utilizing our increasing cash flow to support brand momentum, including investments in store renovations as well as ongoing investments in …