Capri Holdings Limited (CPRI) SEC Filings & Earnings Calls

Revenue guidance cut due to Michael Kors headwinds; tariff and FX risks.

“Softer trends in EMEA and updated foreign currency exchange rate assumptions are impacting our revenue outlook.” · word for word

Tariff rate assumptions embedded in guidance; incremental tariffs could further impact.

“Guidance assumes an incremental 10% tariff rate on imports into the United States through July 24, 2026 and 10% to 12.5% thereafter.” · word for word

Tariff and trade policy uncertainty

“Uncertainty regarding the scope, duration and administration of trade measures, including the timing and recoverability of tariff refunds or relief where applicable, also contributed to, and may continue to contribute to, variability in costs and cash flows.” · word for word

Macroeconomic and inflationary pressure on consumer spending

“Given the discretionary nature of our products, fluctuations in consumer confidence and disposable income, as well as elevated inflation, impact our business performance.” · word for word

Foreign currency fluctuation

“Currency volatility impacted our first quarter Fiscal 2027 reported results and contributed, or are expected to contribute, to variability of results in prior and future periods.” · word for word

Supply chain disruption

“During recent periods, port congestion and closures, capacity constraints across ocean, trucking and distribution networks, and disruptions to certain international shipping routes contributed to increased logistics and production costs, affected the timing of inventory receipts and created pressure on gross margin.” · word for word

Reduced credit facility size may limit liquidity flexibility; covenant of 4.0x net leverage ratio.

“The Credit Agreement continues to require the Company to maintain a net leverage ratio as of the end of each fiscal quarter of no greater than 4.0 to 1.”

Key Executive Departures

“Krista A. McDonough voluntarily resigned to pursue another professional opportunity. Her last day with the Company is June 26, 2026.”

Tariff Exposure

“U.S. tariffs that have had a disproportionate impact on the Company’s stock, relative to the Company’s peers, given its heavily weighted North American business” · word for word

Luxury Demand Weakness

“weakened luxury demand” · word for word

Revenue decline and currency headwinds

“Revenue decreased 3.7% on a reported basis and 7.0% in constant currency” · word for word

Tariff and Trade Policy Uncertainty

“changes in trade policies, tariffs and import regulations affected product costs and operating income” · word for word

Foreign Exchange Exposure

“Currency volatility impacted our Fiscal 2026 reported results and contributed... to variability of results in prior and future periods.” · word for word

Goodwill and Intangible Impairment Risk

“Jimmy Choo Retail brand intangible asset fair value exceeded carrying value by approximately 6% which has a remaining net carrying value of $155 million.”

Macroeconomic Demand Pressure

“Global economic conditions, including inflationary pressure, geopolitical instability... impacted our business in Fiscal 2026.” · word for word

Key executive departure could disrupt legal and sustainability functions, potentially impacting regulatory compliance and ESG initiatives.

“Chief Legal and Sustainability Officer resigning; successor not yet identified.”

U.S. Import Tariff Exposure

“The 290 basis point decrease in gross profit margin was primarily attributable to the unfavorable impact of increased U.S. import tariffs.” · word for word

Luxury Demand Weakness

“Michael Kors revenue decreased $51 million, or 5.6%, to $858 million for the three months ended December 27, 2025, compared to $909 million for the three months ended December 28, 2024, primarily due to the result of certain strategic initiatives previously put in place at Michael Kors that did not perform as expected, as well as a decrease in promotional ac” · word for word

Store Footprint Reduction

“Total number of retail stores: 908 as of December 27, 2025, compared to 971 as of December 28, 2024.”

Tariff impact on gross margin; revenue decline in Michael Kors; guidance subject to macroeconomic conditions and incremental tariffs.

“Underlying gross margins expanded 70 basis points, offset by higher than anticipated tariffs. Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including changes in global macroeconomic conditions, incremental tariff rates in excess of our assumptions, greater than a” · word for word

Post-divestiture revenue base reduced; reliance on remaining brands (Michael Kors, Jimmy Choo).

“Versace disposal removes a key brand; remaining portfolio concentration risk.”

Tariff impact on gross margin

“Tariffs negatively impacted the gross margin rate by approximately 130 basis points.” · word for word

Jimmy Choo operating loss widening

“Jimmy Choo operating loss was $9 million and operating margin was (6.9)%, compared to operating loss of $5 million and operating margin of (3.6)% in the prior year.”

Higher tax rate impacting adjusted net income

“A higher than anticipated effective tax rate versus our original guidance due to the Company's valuation allowance position negatively impacted adjusted net income by $24 million or $0.20 per share.” · word for word

Tariff exposure on core sourcing countries

“In April 2025, the U.S. Government announced tariffs on imports from select countries. The majority of the Company's products sold in the U.S. are imported from countries in which these tariffs were announced, including Vietnam, Cambodia, Indonesia and Bangladesh, where the primary manufacturers of Michael Kors products are located.” · word for word

Continued luxury demand weakness

“Jimmy Choo revenues decreased $9 million, or 6.4%, to $131 million for the three months ended September 27, 2025, compared to $140 million for the three months ended September 28, 2024, primarily attributable to a continued slowdown in demand for certain categories of fashion luxury goods, particularly in EMEA and Asia.” · word for word

Negative operating cash flow

“Net cash used in operating activities was $13 million during the six months ended September 27, 2025, as compared to net cash provided by operating activities of $138 million for the six months ended September 28, 2024.” · word for word