Capri Holdings reported a loss for the third fiscal quarter amid a double-digit sales decline.

The company’s revenue for the quarter ended December 28 fell 11.6 per cent to $1.26 billion. It swung to an operating loss of $590 million and net loss of $547 million.

Chairman and CEO John D Idol said the results were disappointing, citing that the overall business remained challenged.

“We are reevaluating our strategic initiatives to improve current sales trends. Looking ahead, we expect our performance to improve throughout fiscal year 2026 positioning us to return to growth in fiscal 2027 and beyond,” he added.

According to GlobalData MD Neil Saunders, the sales decline came off the back of an 8.6 per cent decrease in the prior year.

The company had a “miserable” holiday season and has carried on its “well-established trend of significant underperformance”, the analyst added.

“While it is certainly true that there are challenges in wholesale and that the luxury market is softer, these factors do not explain Capri’s chronic inability to stabilise its sales line. 

“A decline of 11.6 per cent is way worse than the market and, along with the drop in retail sales, it signifies that the brands are losing traction with many shoppers,” he elaborated.

All brands recorded lower sales during the period, with Versace down 15 per cent, Jimmy Choo down 4.2 per cent and Michael Kors down 12.1 per cent.

Saunders stressed that Capri’s management needs to stop treading water and start fixing the issues so that they can get back into growth, as a merger with Tapestry is now firmly off the table.

“A change of tack is desperately needed, as is some shuffling in the management suite. Even if Capri leadership still wants to eventually sell the business, it needs to at least stabilise the brands to secure good valuations for investors,” he stated.

For the full year, the company expects total revenue of approximately $4.4 billion and adjusted operating income of about $100 million.