"We recognize that adapting to new consumer behaviors is paramount, and we are restructuring our marketing to reinforce brand loyalty while expanding our digital presence."
— John Idol, CEO
03Detailed Report
CPRI
Capri Holdings Limited
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 21, 2026
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Executive Summary
In the fourth quarter of 2024, Capri Holdings Limited faced significant challenges, reflecting an overall net income loss of $472 million, translating to an EPS of -$4.03. This disappointing performance was attributed to a revenue decline of 8.39% year-over-year (YoY) and a more severe 14.30% decline sequentially. Management has acknowledged these struggles and signaled a strategic pivot aimed at adapting to shifting consumer preferences and enhancing brand loyalty. While the immediate outlook appears concerning, management remains optimistic about long-term brand repositioning and operational efficiencies as they navigate through an evolving luxury market.
The company’s operating income reflected substantial resilience with a remarkable YoY growth of 177.50%, suggesting appropriate cost controls amidst declining revenues. The focus now shifts to scalability and recovery of profitability in an industry marked by intense competition and changing consumer dynamics.
Key Performance Indicators
Revenue
Decreasing
1.22B
QoQ: -14.30% | YoY: -8.39%
Gross Profit
Decreasing
713.00M
58.30% margin
QoQ: -23.17% | YoY: -16.90%
Operating Income
Increasing
31.00M
QoQ: -74.59% | YoY: 177.50%
Net Income
Decreasing
-472.00M
QoQ: -549.52% | YoY: -1 288.24%
EPS
Decreasing
-4.03
QoQ: -547.78% | YoY: -1 339.29%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.223 billion, down 8.39% YoY, down 14.30% QoQ Gross Profit: $713 million with a gross profit margin of 58.3%, representing a significant decline from prior periods. Operating Income: $31 million, a notable rebound of 177.50% YoY but down 74.59% QoQ. Net Income: A loss of $472 million, with a net profit margin of -38.6%. Cash Flow: Operating cash flow stood at approximately $43.68 million with free cash flow at -$6.16 million, painting a challenging liquidity picture.
Major fluctuations in performance metrics highlight operational adjustments to align with market demands, emphasizing a strategic focus for recovery.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.22B
-8.39%
-14.30%
Gross Profit
713.00M
-16.90%
-23.17%
Operating Income
31.00M
177.50%
-74.59%
Net Income
-472.00M
-1 288.24%
-549.52%
EPS
-4.03
-1 339.29%
-547.78%
Key Financial Ratios
Gross Profit Margin
Good
58.30%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
2.53%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.39%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.07%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.30%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.95
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
2.24
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-2.81x
Negative earnings make P/E ratio not meaningful
Price to Book
Premium
3.32x
Trading at premium to book value, reflects strong intangibles or growth
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