The news: Capri Holdings said it may boost prices on some goods to offset tariff headwinds and a tough economy after it posted lower fiscal Q4 revenues and a wider quarterly loss, even as it pointed to progress in its bid to turn around its flagship brand, Michael Kors.

The company, which is selling the Versace brand to Prada after a failed attempt to merge with Tapestry last year, cited optimism that it could improve results at Michael Kors and Jimmy Choo as the Versace sale reduces its debt.

By the numbers:

• Revenues in the quarter ended March 29 fell 15% to $1.04 billion, higher than the $986.6 million analysts expected, per LSEG data cited by Reuters.
• The company’s net loss widened to $645 million from $472 million a year earlier.
• Revenues fell about 16% at Michael Kors, 3% at Jimmy Choo, and 21% at Versace, whose sale is expected to be completed in H2 2025.

Brand challenges: Capri is banking on reviving Michael Kors, which has faced trouble in the US due to discounting and competition from brands like Coach. It has also reportedly explored a sale for Jimmy Choo. It recently launched an Amazon storefront for Michael Kors and plans to renovate roughly half of its stores. The company said it was looking to reinvigorate Jimmy Choo with expanded accessories and footwear options.

During its earnings conference call, CEO John Idol cited “signs of progress” from its efforts.

• Idol said that two months into the current quarter, comps at Michael Kors are almost flat, noting a “significant step change” in the brand’s retail performance, led by its full-priced business.
• Idol noted a “moderation in the rate of decline” in Michael Kors store traffic for the current quarter to date and said the brand’s global consumer database has risen 10% YoY.
• At Jimmy Choo, the recently launched Diamond Flex shoe was the fastest-selling sneaker in the brand’s history.

Our take: Capri struck an upbeat posture based on signs of improvement at Michael Kors and Jimmy Choo, but it faces an uphill battle executing a rebound.

The retailer must weather a tough discretionary spending climate and tariff-related cost pressures while trying to breathe new life into brands that have lost some consumer traction. That’s a hard task that will likely require more than incremental wins.

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