Versace, Michael Kors, Jimmy Choo stumble hard
Capri suffers as Versace, Michael Kors, and Jimmy Choo struggle.
There’s one pair of heels I reach for almost every time I get dressed up — my strappy Versace platform sandals.
They add four glorious inches to my almost 5-foot frame and somehow manage to be both dramatic and wearable. They’re also weirdly comfy...like "What-kind-of-voodoo-is-this?" comfy.
I'll admit, I'm embarrassed to say how much they cost — but considering how often I wear them, they've easily earned their keep (and then some).
Related: Dior suffers major loss as trailblazing designer exits
I’ve always loved the power of a good heel.
Back in 2016, I bought my first pair of Jimmy Choos, classic black pumps. I gifted them to myself when I graduated college and started a job at Deloitte.
Nearly a decade later, I still have them. They’re timeless, elegant, and survived more than a few client meetings and various airport escalators.
That’s what makes Capri Holdings’ latest earnings such a gut punch.
The company behind these iconic brands (Versace, Jimmy Choo, and Michael Kors) just reported a brutal quarter, dragged down by slumping sales across all three labels.
Capri’s painful Q4 and the Versace exit plan
Capri Holdings Limited (CPRI) reported a $645 million net loss for the fourth quarter of fiscal 2025 — a steep increase from the $472 million loss it posted the year prior.
The full-year picture was even more staggering: a $1.2 billion total loss, largely due to a massive non-cash tax hit and deteriorating operating performance.
All three brands posted declines, but Versace was hit hardest with a 21% drop, followed by Michael Kors at 15.6% and Jimmy Choo at 2.9%.
Capri CEO John Idol acknowledged the struggle in a statement, calling fiscal 2025 “a challenging year.”
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He emphasized that the company is still in the early stages of a turnaround — and that there are “positive indicators” starting to emerge.
One big piece of that strategy? Saying goodbye to Versace.
Capri announced in April that it would sell the high-fashion brand to Prada Group for $1.375 billion in cash. The deal, expected to close in the second half of 2025, is meant to reduce debt and reposition Capri for long-term growth.
But will it be enough to keep the company afloat?
A risky bet on Michael Kors and Jimmy Choo
With Versace on its way out, Capri is placing its bets on Michael Kors and Jimmy Choo — and the stakes couldn’t be higher.
The company expects to generate up to $3.4 billion in total revenue in fiscal 2026, with Michael Kors projected to make up the lion’s share.
Idol laid out a long-term goal of growing Michael Kors to $4 billion and Jimmy Choo to $800 million, although neither brand is on track just yet.
For now, Capri’s outlook remains cautious. Its Q1 forecast calls for flat earnings and continued pressure from tariffs, currency swings, and softer consumer demand.
It’s a pivotal moment for the company. Versace, Michael Kors, and Jimmy Choo aren’t just big names — they’re brands that shaped milestones for women like me.
And while the shoes may be timeless, the business keeping them alive is facing a very real reset.
In the meantime, I’ll still be strutting away in my Versaces and Jimmy Choos.
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