Capri Holdings is still looking for its footing.
The company, which owns Michael Kors, Versace and Jimmy Choo, logged a $675 million non-cash impairment charge against its assets in the third quarter, hitting the bottom line hard.
Net losses for the quarter tallied $547 million, or $4.61 a diluted share, a steep drop off from earnings of $105 million, or 88 cents, a year earlier.
On an adjusted basis, income fell to $54 million from $142 million a year earlier. That put adjusted earnings per share at 45 cents, 20 cents below the 65 cents analysts projected, according to Yahoo Finance.
Shares of the company fell 8 percent to $22.10 in premarket trading on Wednesday.
Revenues for the quarter ended Dec. 28 fell 11.6 percent to $1.26 billion.
Michael Kors’ sales were down 12.1 percent to $909 million, while Versace’s sales declined by 15 percent to $193 million and Jimmy Choo slipped 4.2 percent to $159 million.
“Overall our business remained challenged during the quarter and we were disappointed with our results,” said John Idol, chairman and chief executive officer. “We are reevaluating our strategic initiatives to improve current sales trends. Looking ahead, we expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond.
“Our portfolio of iconic fashion luxury brands, Versace, Jimmy Choo and Michael Kors, are globally recognized and resonate with consumers,” he said. “I am optimistic about Capri’s future and remain confident in our long-term growth potential.”
Idol is not the only one looking at Versace and Jimmy Choo and thinking about the future.
With the help of Barclays, Capri started seeking buyers for the two brands late last year.
Capri has not acknowledged the potential sale since WWD first reported on it in December, but it’s been an active process that has drawn some familiar names. Former Gucci chief Marco Bizzarri, as well as Prada, are said to be taking a close look at Versace while Jimmy Choo co-founder Tamara Mellon is said to be trying to buy back that brand.
Capri had been looking to close an $8.5 billion deal to be bought by competitor Tapestry Inc., but the transaction was tripped up by regulators and dropped in November.
