Capri Holdings (CPRI) CMD 2025 summary

Strategic Vision and Growth Pillars

• Focus on maximizing Versace, Jimmy Choo, and Michael Kors through tailored strategies, impactful communication, innovative products, and exceptional consumer experiences, supported by a global network of 1,200 stores and a strong digital platform.

• Emphasis on omnichannel engagement, digital transformation, and leveraging a global retail and wholesale network to drive growth.

• Commitment to cost reduction, store optimization, and targeted investments, especially in store renovations and digital capabilities.

• Prioritization of brand codes, heritage, and data-driven marketing to reconnect with core consumers and attract new audiences.

• Corporate values and community engagement remain central to the long-term strategy.

Financial Guidance and Operational Targets

• Group revenue expected to return to growth in fiscal 2027, targeting $6.3 billion, with operating margins reaching high-teens percent.

• $300 million in operating expense reductions planned over fiscal 2025 and 2026, with stable expenses thereafter.

• CapEx of $125 million annually in fiscal 2025/26, rising to $200 million in 2027/28, mainly for Michael Kors store renovations.

• Net debt reduction of $200 million per year, aiming for $600 million by fiscal 2028.

• Capital allocation prioritizes business investment and debt reduction, with potential for share repurchases as the business stabilizes.

Brand-Specific Growth Plans

• Versace targets $1.5 billion revenue, driven by doubling accessories to $600 million, scaling footwear, expanding in Asia and EMEA, and launching a new luxury line in 2025.

• Jimmy Choo aims for $800 million revenue, with accessories growing to 30% of sales, men's tripling to 8% of mix, and e-commerce expected to grow 65% to $140 million.

• Michael Kors targets $4 billion revenue, focusing on accessories growth to $2.4 billion, store renovations, and a return to core brand codes and pricing architecture.

• All brands to increase retail and e-commerce penetration, with flagship-first strategies and selective store expansion post-optimization.

• Retail productivity initiatives aim to increase store sales per square foot, with Versace targeting $1,500 and Jimmy Choo $1,500.