Capri Sees Second-Half Growth as Michael Kors Reset Gains Traction
Capri Holdings Limited (NYSE:CPRI) is forecasting stronger growth in the second half of the year, driven by its ongoing repositioning efforts at Michael Kors. The brand has introduced new product lines like the Laila and Hamilton handbags, reduced promotional activity to reinforce full-price positioning, and renovated stores that are showing significant sales improvements. Management also highlighted a 27% reduction in inventory levels for Michael Kors. Jimmy Choo is expanding into casual footwear and accessories with strong performance from its accessory line, which saw over 20% growth year-over-year. The brand is expected to turn profitable this year. Capri maintained its full-year outlook, including a projected 40% increase in earnings per share. Regional trends remain mixed: North America remains resilient while Europe faces challenges and China shows signs of recovery. Capri's CEO John Idol emphasized the importance of fashion-forward products with clear value propositions to attract consumers globally. The company is increasing marketing spend to nearly 10% of revenue for the second half, supporting both Michael Kors and Jimmy Choo as part of its broader brand reset.
Tickers: $CPRI
Topics: Capri Holdings Limited luxury brands Michael Kors turnaround retail strategy