Capri Holdings Limited (CPRI) Bundle
A Brief History of Capri Holdings
Capri Holdings Limited, a global fashion luxury group, has undergone significant transformations since its inception. The company, which includes renowned brands such as Michael Kors, Versace, and Jimmy Choo, has navigated various market challenges and opportunities over the years.
Financial Performance Overview as of 2024
As of September 28, 2024, Capri Holdings reported total revenue of $2.146 billion, a decrease of 14.8% compared to $2.520 billion for the same period in 2023. The decline in revenue was primarily attributed to macroeconomic headwinds affecting global demand for luxury goods.
| Metric | September 28, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Total Revenue | $2.146 billion | $2.520 billion | (14.8)% |
| Gross Profit | $1.383 billion | $1.644 billion | (15.9)% |
| Net Income | $10 million | $138 million | (92.8)% |
| Operating Income | $(46) million | $180 million | NM |
Brand Performance
Performance varied significantly across the brands under Capri Holdings:
- Michael Kors: Revenue decreased by 15.2% to $1.413 billion.
- Versace: Revenue dropped 22.1% to $420 million.
- Jimmy Choo: Revenue remained relatively stable with a slight decrease of 0.6% to $313 million.
| Brand | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Michael Kors | $1.413 billion | $1.666 billion | (15.2)% |
| Versace | $420 million | $539 million | (22.1)% |
| Jimmy Choo | $313 million | $315 million | (0.6)% |
Cost Management and Expenses
Capri Holdings has focused on managing its operating expenses, which totaled $1.429 billion for the six months ended September 28, 2024, a decrease of 2.4% compared to the previous year. Selling, general, and administrative expenses were $1.288 billion, down by 4.8%.
| Expense Category | Amount (2024) | Amount (2023) | % Change |
|---|---|---|---|
| Total Operating Expenses | $1.429 billion | $1.464 billion | (2.4)% |
| Selling, General and Administrative Expenses | $1.288 billion | $1.353 billion | (4.8)% |
| Depreciation and Amortization | $96 million | $93 million | 3.2% |
| Impairment of Assets | $43 million | $20 million | NM |
Balance Sheet Highlights
As of September 28, 2024, Capri Holdings reported total assets of $6.792 billion and total debt of $1.708 billion. The company’s liquidity position is highlighted by cash and cash equivalents of $182 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $6.792 billion |
| Total Debt | $1.708 billion |
| Cash and Cash Equivalents | $182 million |
| Working Capital | $(123) million |
Market Dynamics and Challenges
The luxury fashion market has faced challenges due to changing consumer behavior and economic conditions. Capri Holdings has identified these trends as critical to strategizing future growth initiatives.
In conclusion, Capri Holdings continues to adapt to a challenging market environment while focusing on cost management and brand performance to navigate through fiscal 2024.
A Who Owns Capri Holdings Limited (CPRI)
Major Shareholders
As of 2024, the ownership structure of Capri Holdings Limited (CPRI) is characterized by a mix of institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 11.5% | Institutional |
| The Vanguard Group, Inc. | 9.8% | Institutional |
| FMR LLC (Fidelity Investments) | 7.2% | Institutional |
| State Street Corporation | 5.5% | Institutional |
| Wellington Management Company LLP | 4.4% | Institutional |
| Individual Shareholders | 61.6% | Individual |
Recent Changes in Ownership
In recent months, there have been notable changes in the shareholder composition of Capri Holdings. The company has been involved in strategic discussions regarding potential mergers and acquisitions, particularly with Tapestry, Inc. On August 10, 2023, Capri announced an Agreement and Plan of Merger with Tapestry, which includes an all-cash transaction for the acquisition of Capri.
Institutional Investor Trends
Institutional investors have shown a consistent interest in Capri Holdings, reflecting confidence in its long-term growth potential. The following data outlines the trend in institutional ownership over the past year:
| Period | Institutional Ownership Percentage |
|---|---|
| September 2023 | 56.3% |
| December 2023 | 58.7% |
| March 2024 | 60.2% |
| September 2024 | 61.6% |
Market Performance
As of September 28, 2024, Capri Holdings reported total revenue of $2.146 billion, representing a decrease of 14.8% compared to the same period in the previous year. The company's net income attributable to Capri for the six months ended September 28, 2024, was $10 million, a significant decline from $138 million in the previous year.
Share Repurchase Program
Capri Holdings has actively engaged in share repurchase activities, which is a common strategy used by companies to return value to shareholders. The following table details the treasury share repurchases during the six months ended September 28, 2024:
| Period | Shares Repurchased | Total Amount (in millions) |
|---|---|---|
| March 2024 | 1,300,000 | $4.0 |
| September 2024 | 106,000 | $0.4 |
Conclusion of Ownership Analysis
The current ownership structure of Capri Holdings Limited reflects a strong institutional presence, coupled with a substantial percentage held by individual investors. The anticipated merger with Tapestry could further influence the ownership dynamics as the companies navigate through the regulatory processes and market reactions.
Capri Holdings Limited (CPRI) Mission Statement
Mission Statement Overview
Capri Holdings Limited aims to be a global leader in the luxury fashion industry by offering high-quality products that inspire and empower consumers. The company focuses on delivering exceptional customer experiences through innovative design, craftsmanship, and sustainable practices.
Financial Performance Indicators
As of September 28, 2024, the financial performance of Capri Holdings Limited reflects the challenges and opportunities within the luxury market. Below are key financial metrics that highlight the company's current standing.
| Metric | Six Months Ended September 28, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Total Revenue | $2,146 million | $2,520 million | (14.8)% |
| Cost of Goods Sold | $763 million | $876 million | (12.9)% |
| Gross Profit | $1,383 million | $1,644 million | (15.9)% |
| Selling, General & Administrative Expenses | $1,288 million | $1,353 million | (4.8)% |
| Net Income Attributable to Capri | $10 million | $138 million | (92.8)% |
Segment Performance
The performance of Capri's primary brands—Versace, Jimmy Choo, and Michael Kors—provides insight into its operational effectiveness.
| Brand | Revenue (in millions) | % Change |
|---|---|---|
| Versace | $420 | (22.1)% |
| Jimmy Choo | $313 | (0.6)% |
| Michael Kors | $1,413 | (15.2)% |
Liquidity Position
Capri Holdings' liquidity position as of September 28, 2024, is crucial for its operational sustainability and growth prospects.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $182 |
| Working Capital | $(123) |
| Total Assets | $6,792 |
| Short-term Debt | $471 |
| Long-term Debt | $1,237 |
Shareholder Equity
The following table outlines the shareholder equity metrics for Capri Holdings Limited.
| Equity Component | Amount (in millions) |
|---|---|
| Ordinary Shares Outstanding | 227,571 |
| Treasury Shares | $(5,462) |
| Retained Earnings | $5,489 |
| Total Shareholders' Equity | $1,486 |
Recent Developments
On August 10, 2023, Capri Holdings entered into an Agreement and Plan of Merger with Tapestry, Inc., indicating a strategic move to enhance its market position in the luxury fashion segment.
As of September 28, 2024, Capri continues to adapt to the evolving market conditions, maintaining its focus on sustainability and innovative design to drive future growth.
How Capri Holdings Limited (CPRI) Works
Company Overview
Capri Holdings Limited is a global fashion luxury group that owns the brands Michael Kors, Versace, and Jimmy Choo. The company operates in the luxury fashion sector, selling apparel, accessories, and footwear globally through a mix of retail, wholesale, and online channels.
Financial Performance
As of September 28, 2024, Capri Holdings reported a significant decline in financial performance compared to the previous year. The total revenue for the six months ended September 28, 2024, was $2.146 billion, a decrease of 14.8% from $2.520 billion for the same period in 2023. This decline was largely attributed to macroeconomic challenges affecting the demand for luxury goods.
| Financial Metric | Six Months Ended September 28, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Total Revenue | $2,146 million | $2,520 million | (14.8)% |
| Cost of Goods Sold | $763 million | $876 million | (12.9)% |
| Gross Profit | $1,383 million | $1,644 million | (15.9)% |
| Selling, General and Administrative Expenses | $1,288 million | $1,353 million | (4.8)% |
| Net Income | $10 million | $138 million | (92.8)% |
Brand Performance
Each of Capri's brands has shown varied results in terms of revenue. The performance for the three months ended September 28, 2024, is detailed below:
| Brand | Total Revenue (Q3 2024) | Total Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Versace | $201 million | $280 million | (28.2)% |
| Jimmy Choo | $140 million | $132 million | 6.1% |
| Michael Kors | $738 million | $879 million | (16.0)% |
Operating Expenses
Operating expenses have remained substantial, with total operating expenses for the six months ended September 28, 2024, amounting to $1.429 billion. This represents a slight decrease of 2.4% compared to $1.464 billion for the same period in 2023.
Liquidity and Capital Resources
As of September 28, 2024, Capri Holdings reported the following liquidity metrics:
| Liquidity Metric | September 28, 2024 | March 30, 2024 |
|---|---|---|
| Cash and Cash Equivalents | $182 million | $199 million |
| Working Capital | $(123) million | $(87) million |
| Total Assets | $6,792 million | $6,689 million |
| Short-term Debt | $471 million | $462 million |
| Long-term Debt | $1,237 million | $1,261 million |
Cash Flow Analysis
For the six months ended September 28, 2024, Capri Holdings reported cash flows as follows:
| Cash Flow Activity | Amount |
|---|---|
| Operating Activities | $133 million |
| Investing Activities | $(79) million |
| Financing Activities | $(67) million |
Market and Economic Challenges
Capri Holdings has faced significant macroeconomic headwinds, leading to softening demand for luxury goods across its brands. The company anticipates that these challenges will continue to impact its performance in the near term.
Future Outlook and Strategic Initiatives
Capri is currently assessing its operational and IT transformation projects, which are part of a longer-term strategy to enhance efficiency and effectiveness across its brand portfolio. The company is focusing on digital capabilities and improving the overall customer experience.
How Capri Holdings Limited (CPRI) Makes Money
Revenue Sources
Capri Holdings Limited generates revenue through three primary brands: Michael Kors, Versace, and Jimmy Choo. The financial performance for the three months ended September 28, 2024, indicates significant variations across these brands.
| Brand | Revenue (in millions) | % Change |
|---|---|---|
| Michael Kors | $738 | (16.0%) |
| Versace | $201 | (28.2%) |
| Jimmy Choo | $140 | 6.1% |
| Total Revenue | $1,079 | (16.4%) |
For the six months ended September 28, 2024, the revenue performance was as follows:
| Brand | Revenue (in millions) | % Change |
|---|---|---|
| Michael Kors | $1,413 | (15.2%) |
| Versace | $420 | (22.1%) |
| Jimmy Choo | $313 | (0.6%) |
| Total Revenue | $2,146 | (14.8%) |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) and gross profit for the three months ended September 28, 2024, are outlined below:
| Metric | Amount (in millions) |
|---|---|
| Cost of Goods Sold | $385 |
| Gross Profit | $694 |
| Gross Profit Margin | 64.3% |
For the six months ended September 28, 2024:
| Metric | Amount (in millions) |
|---|---|
| Cost of Goods Sold | $763 |
| Gross Profit | $1,383 |
| Gross Profit Margin | 64.4% |
Operating Expenses
Operating expenses for the three months ended September 28, 2024, were reported as follows:
| Expense Type | Amount (in millions) |
|---|---|
| Selling, General and Administrative Expenses | $639 |
| Depreciation and Amortization | $49 |
| Impairment of Assets | $43 |
| Total Operating Expenses | $732 |
For the six months ended September 28, 2024:
| Expense Type | Amount (in millions) |
|---|---|
| Selling, General and Administrative Expenses | $1,288 |
| Depreciation and Amortization | $96 |
| Impairment of Assets | $43 |
| Total Operating Expenses | $1,429 |
Net Income
Capri Holdings reported net income for the three months ended September 28, 2024, as follows:
| Metric | Amount (in millions) |
|---|---|
| Net Income | $24 |
| Net Income (attributable to Capri) | $24 |
For the six months ended September 28, 2024:
| Metric | Amount (in millions) |
|---|---|
| Net Income | $10 |
| Net Income (attributable to Capri) | $10 |
Geographic Revenue Distribution
Revenue by geographic location for the three months ended September 28, 2024:
| Region | Revenue (in millions) |
|---|---|
| The Americas | $591 |
| EMEA | $348 |
| Asia | $140 |
| Total Revenue | $1,079 |
For the six months ended September 28, 2024:
| Region | Revenue (in millions) |
|---|---|
| The Americas | $1,164 |
| EMEA | $653 |
| Asia | $329 |
| Total Revenue | $2,146 |
Future Revenue Expectations
Contractually guaranteed minimum fees expected to be recognized as revenue during future periods are outlined below:
| Period | Contractually Guaranteed Minimum Fees (in millions) |
|---|---|
| Remainder of Fiscal 2025 | $19 |
| Fiscal 2026 | $34 |
| Fiscal 2027 | $30 |
| Fiscal 2028 | $22 |
| Fiscal 2029 | $19 |
| Fiscal 2030 and thereafter | $15 |
| Total | $139 |
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Resources:
- Capri Holdings Limited (CPRI) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Capri Holdings Limited (CPRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Capri Holdings Limited (CPRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.