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Capri Holdings Limited (CPRI-1.74%) has submitted its 10-Q filing for the quarterly period ended December 28, 2024.
The filing reports a decrease in total revenue to $1.261 billion for the three months ended December 28, 2024, compared to $1.427 billion in the same period the previous year. This decline is attributed to a slowdown in demand for luxury fashion goods globally.
Gross profit for the quarter was $812 million, down from $928 million in the previous year, with the gross profit margin decreasing to 64.4% from 65.0%. The decrease is primarily due to lower full price sell-throughs.
The company recorded a significant impairment charge of $675 million, primarily related to the impairment of goodwill and intangible assets for its Jimmy Choo and Versace brands.
Capri reported a net loss of $547 million for the quarter, compared to a net income of $105 million in the previous year. The loss was driven by the impairment charges and a decrease in revenue.
Operating expenses for the quarter increased to $1.402 billion from $806 million, largely due to the impairment charges.
Interest income for the quarter was $8 million, compared to an interest expense of $1 million in the previous year, due to higher interest income from net investment hedges.
The company terminated its merger agreement with Tapestry, Inc., resulting in a reimbursement of $45 million for certain expenses.
Capri Holdings continues to focus on its standalone business strategies following the termination of the merger agreement.
The filing also discusses various legal proceedings, including shareholder litigation related to the terminated merger with Tapestry, Inc.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Capri Holdings Limited quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.