Capri Holdings Investor Day: Talk Centers on Product Innovation, Impact Marketing, Right-sizing Retail Fleet
Capri Holdings Inc. is looking to restore growth in all three of its luxury brands — Michael Kors, Versace and Jimmy Choo — with an emphasis on innovative fashion products, delivering exceptional customer service and inspiring new and existing customers through impactful marketing.
Speaking at Capri’s Investor Day, John D. Idol, the group’s chairman and chief executive officer, along with the leaders of Versace and Jimmy Choo gave insights into their priorities to drive momentum and increase profitability across their businesses, which have been struggling along with Michael Kors.
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“We have to reset this business and will take some pain doing it,” said Idol.
Analysts at least initially seemed to like what they heard, sending Capri’s share price up 4.9 percent Wednesday to $22.58.
However, Idol did not address reports that Capri is looking to sell Jimmy Choo and Versace, with Choo cofounder Tamara Mellon said to be interested in the former and Prada Group and others eyeing Versace.
Tom Edwards, chief financial and chief operating officer of Capri, kicked off the event noting that they are optimistic about the company’s long-term growth potential, starting with revenue “and we expect to return to growth in fiscal 2027 and grow to $6.3 billion in the future, across all our luxury houses.”
He said they are focused on brand desirability through exciting communication, compelling product and omnichannel consumer experience throughout all the brands. New product at Versace and Michael Kors is beginning to flow in for spring, “but the more significant changes will be seen by fall and holiday,” he said. He also said in the near term, the company is being impacted by a reduction in wholesale distribution, store closures and foreign exchange.
Edwards said they anticipate FX will negatively impact fiscal 2026 by about $100 million, and store closures will impact revenue by about $60 million. “We expect to return to growth in fiscal 2027. For operating margin, we expect expansion beginning in fiscal 2026 with margins reaching the high teens as a percent of sales in the future,” said Edwards.
Edwards said they expect operating expenses to decline by $100 million in fiscal 2025 and $200 million in fiscal 2026 for a combined total of $300 million over two years. He then expects expenses to remain stable in fiscal 2027 and fiscal 2028 off the fiscal 2026 base. “As our business returns to growth, we will continue cost reduction and efficiency initiatives to offset natural expense increases,” said Edwards.
For Versace, they expect future revenue of $1.5 billion, increasing to 24 percent of Capri’s total. For Jimmy Choo, Capri anticipates future revenue of about $800 million, remaining at about 13 percent of total Capri revenue. For Michael Kors, they anticipate future revenue of $4 billion, but decreasing to 63 percent as a percent of the total, said Edwards.
Turning to investments, Edwards pointed out that Capri is expected to spend $125 million in capex in fiscal 2025 and fiscal 2026 and then increase to $200 million in fiscal 2027 and 2028. The majority of the increase will come from Michael Kors store renovations. Over the next three years, the company plans to renovate about 50 percent of the MIchael Kors store fleet retail locations. The company anticipates that will change the trajectory of the business.
Over the past year, they have renovated several stores in a new format and they have been pleased with the results. Edwards noted they are closing more than 100 doors in fiscal 2025 and closing about 75 doors in fiscal 2026. “We will continue to open locations in the most fashionable cities and sought-after shopping destinations around the world,” he said.
Further, they expect 300 luxury stores for Versace, 225 for Jimmy Choo and 700 for Michael Kors.
Looking at growth by region, Edwards said they expect about 33 percent of revenues to come from the Americas. “We expect revenue growth in the Americas to resume in fiscal 2026. Over time, we expect America’s revenue to increase to nearly $500 million. Relative to our estimate for fiscal 2025, we expect to generate incremental revenue of approximately $200 million in the Americas,” said Edwards. Further, he said he expects to generate incremental revenue of about $250 million in EMEA, and in Asia, they anticipate about 27 percent of future revenue to come from this area. “Over time, we expect Asia to increase to over $400 million in revenue,” said Edwards.
The leadership teams of Versace, Jimmy Choo and Michael Kors then walked through their respective plans in more detail.
Versace’s Plan
Emmanuel Gintzburger, CEO of Versace, said their main priority is growing its accessories business to $600 million, scaling their footwear business to $250 million and increasing revenues in the menswear segment. “Our key strength is our iconic house code,” he said.
As they are repositioning the brand, they will leverage their signature Medusa, Greca and Versace names to strengthen brand recognition across product categories. He also pointed out there will be an important launch of a luxury line at their fashion show next week. He said the recent and successful launch of the Versace tag shows they are moving in the right direction, “and consumers are responding.”
Turning to footwear, Versace expects to scale revenues to $250 million by building hero products that drive visibility. Gintzburger said they have been successful with platform shoes for $1,500 and sneakers below $600. “We’re now designing core functions with heels and formal shoes in particular.”
To increase business in men’s to $300 million, they will offer a more complete wardrobe, particularly in tailoring and sportswear, which will help the company broaden their consumer base. He noted that women’s was the primary focus in recent years, but they are investing more in communication on menswear. Finally, in licensing, they have a sizable and growing $2 billion revenue business at point of sale. “This is a leading indicator of the strength of the Versace brand. We are continuing to build strong revenue stream from eyewear, beauty and watches,” he said.
In e-commerce, they project to double revenues to $250 million. “We have invested over the past two years in omnichannel capabilities helping us to scale and position our site as the full brand window and traffic generator,” said Gintzburger.
Jimmy Choo’s Strategy
Hannah Colman, CEO of Jimmy Choo, spoke about the plan to continue to build on their brand’s DNA, drive growth across product categories, channels and geographies. “Our strategic initiatives are centered around communication, product and client experience,” she said.
Helene Phillips, Jimmy Choo chief client officer, spoke about the brand’s vision of “Igniting Joy. Empowering achievement.” She said that’s at the heart of everything they do, from products to campaigns to client experiences. She showed two Jimmy Choo products, their Bon Bon bag and their iconic drop heel.
“Launched only one year ago, our successful drop heel now represents 10 percent of all footwear sales,” she said.
She said the JC monogram is a key signifier for the house and is reinforced across all campaigns and product categories. She said accessories are a key strategic growth driver for the house. “I’m thrilled to report that the Cinch bag is the fastest-selling Jimmy Choo day bag in the last five years,” said Phillips.
She noted that they want their clients to live in Jimmy Choo. She pointed to Sydney Sweeney photographed for the brand in their diamond trainer “and epitomizing the casual glamour at Jimmy Choo.” Phillips pointed out they see men’s as a growth opportunity for the house. “With the Jimmy Choo man, we play on our British heritage and our established reputation for excellence in design and craftsmanship,” said Phillips.
She noted that the brand has a successful regional ambassador program and more than 50 million fans on Weibo. “Our globally tiered influencer program is proving successful. It drove over 1.3 billion impressions last year across global platforms, and we will continue our strong track record of strategic brand collaborations.…” she said.
By the end of fiscal 2026, they will have more than 200 stores in leading luxury locations. There has been some consolidation over the last two years, coupled with select strategic openings and renovations, said Colman. She said she expects sales density to increase by approximately 35 percent, growing to $1,500 per square foot over time. They expect to grow accessories from 22 to 30 percent of the business, adding $100 million to top-line revenue. They also look to unlock untapped growth in footwear, triple men’s revenue, going from 4 to 8 percent of sales, and drive retail store productivity.
Michael Kors’ Game Plan
Idol spoke about how they have modernized the jet-set lifestyle of the Michael Kors brand and how they are amplifying their marketing strategies around a new franchise called Hotel Stories. Denise Guerra, senior vice president, brand and communications, explained the brand showcases the essence of the brand and the joy and excitement of travel. It begins in Ibiza with Suki Waterhouse’s ad campaign. She spoke about how the campaign features the new Layla bag, with the iconic MK hardware tag and has been selling very well globally in just under a month.
Philippa Newman, chief brand and product officer at Kors, discussed about how their product strategy is centered around designing standout style at compelling value. She said the plan is to grow accessories to $2.4 billion by celebrating the brand codes and owning hero styles, such as the Nolita soft shoulder at $398, the Layla satchel at $258, and the Bryant crossbody at $178. “All three of these bags are examples of our strategic pricing architecture, which we have begun to implement for spring, and we are seeing overwhelmingly positive response from the consumer on all three of these platforms,” she said.
She said the plan is to grow accessories to $2.4 billion by celebrating their brand codes and owning these hero styles, and ensuring they have a balanced product mix of fashion and core. She also believes they can grow their footwear business to $600 million.
She said in ready-to-wear, which they have found the customers shop more regularly than accessories, they are returning to their historical price architecture. “We believe that women’s ready-to-wear presents a $500 million business opportunity,” said Newman. Turning to men’s, they look to grow this into a $350 million business.
In the retail sector, they look to stabilize their store count over the next several years, to land in the mid-600s globally before returning to store growth. They want to have a flagship focus. They also plan to optimize the stores to the right size. “This means closing select unprofitable locations in the near term, also downsizing or relocating in some key markets where we have oversized stores to support generating higher store sales densities and profitability,” said Anne Walsh, president, North American Retail at Kors.
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