Capri Holdings Exceeds Q3 Expectations, Slashes Net Debt to $80M Post-Versace Sale
CPRI sits 100% above its 52-week low of $11.86.
Summary
Capri Holdings reported better-than-expected Q3 results and significantly reduced its net debt to $80 million following the completion of the Versace sale, strengthening its financial position.
Key Events · Earnings and Guidance · CPRI
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Q3 Results Exceed Expectations
Adjusted diluted EPS of $0.81 surpassed prior year's $0.63, indicating better-than-anticipated performance for the third fiscal quarter ended December 27, 2025.
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Significant Debt Reduction
Net debt was dramatically reduced from $1.17 billion to $80 million as of December 27, 2025, a substantial improvement to the balance sheet.
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Versace Sale Completed
The company finalized the sale of its Versace business on December 2, 2025, with proceeds primarily used for debt extinguishment.
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Revenue Decline
Total revenue decreased 4.0% on a reported basis to $1.025 billion, though the Jimmy Choo segment saw a 5.0% increase in revenue.
Analysis · CPRI · Manufacturing
Capri Holdings' third-quarter results exceeded expectations, driven by strong adjusted earnings per share. The most impactful development is the dramatic reduction in net debt from $1.17 billion to $80 million, a direct result of the completed Versace business sale. This substantial deleveraging significantly improves the company's financial health and provides greater flexibility for its remaining Michael Kors and Jimmy Choo brands. While overall revenue declined, the positive earnings surprise and robust balance sheet improvement are key takeaways for investors. The company also provided its fiscal year 2026 outlook, anticipating a return to growth in fiscal 2027.
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At the time of this filing, CPRI was trading at $23.70 on NYSE in the Manufacturing sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $11.86 to $28.27. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.