Capri Holdings is the latest luxury giant to prove that times are tough out there. The company’s Q1 results for fiscal 2025 saw revenue falling 13.2% on a reported basis and 12.1% in constant currency.

Chairman and CEO John D Idol admitted that the owner of the Michael Kors, Versace and Jimmy Choo brands was “disappointed… as performance continued to be impacted by softening demand globally for fashion luxury goods”.

But he said the three brands “continued to resonate with consumers as evidenced by the 12.6 million new consumers added across our databases, representing 15% growth versus last year. This reflects the strong brand equity and enduring value of our three iconic houses”. 

He also said the company “intends to vigorously defend” its plan to merge with Coach owner Tapestry after the FTC in April filed a lawsuit to block the proposed deal between the two businesses.

That case will clearly continue to make headlines in the months ahead but for now, the big news is the Q1 revenue fall.

The company said total revenue dropped to $1.07 billion, while total company retail sales declined in low-double-digits and in wholesale, revenue decreased in the high-teens, “driven by softer demand globally”.

Gross profit was $689 million and the gross margin was 64.6%, compared to $812 million and 66.1% in the previous year. The gross profit margin drop was “primarily driven by lower full-price sell-throughs”.

The loss from operations was $8 million and the operating margin was -0.7%, compared to income from operations of $80 million and an operating margin of 6.5% a year ago. Adjusted income from operations was $16 million and the adjusted operating margin was 1.5%, compared to $111 million and 9% in the prior year. 

The net loss was $14 million, down from net income of $48 million this time last year, while adjusted net income was $4 million, a sharp drop from $88 million last time.

Looking at the individual brands, Versace revenue of $219 million decreased 15.4% on a reported basis and 14.3% on a constant currency basis.

Retail sales fell in high-single-digits while wholesale revenue down in double-digits. Revenue in the Americas declined 15%, while in EMEA it fell 22% and in Asia 3%.

Its operating loss was $17 million and the operating margin was -7.8%, compared to operating income of $3 million and operating margin of 1.2% in the prior year. 

Jimmy Choo revenue fell 5.5% to $173 million reported and 3.8% constant currency with retail sales down in mid-single-digits while wholesale revenue was down in low-single-digits. Revenue in the Americas actually increased 6%, but EMEA was down 5% and Asia down 17%.

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Operating income was $4 million and the operating margin was 2.3%, compared to $16 million and 8.7% in the prior year. 

At Michael Kors, revenue fell 14.2% to $675 million reported and 13.3% constant currency. Retail sales fell in the low-teens while wholesale revenue plummeted in the high-teens. All regions dropped with the Americas down 10%, EMEA 21% and Asia 23%.

Operating income was $75 million and the operating margin was 11.1%, down from $130 million and 16.5% in the prior year.