Mission Statement, Vision, & Core Values of Capri Holdings Limited (CPRI)

A company's Mission, Vision, and Core Values are not just wall art; they are the compass guiding strategy, especially when the financial seas get rough, and for Capri Holdings Limited, that compass is defintely being tested.

After reporting a fiscal year 2025 revenue of $4.44 billion-a 14.08% decline-and an adjusted net loss of $581 million, the luxury group's foundational principles are more critical than ever as they navigate the sale of Versace and refocus on Michael Kors and Jimmy Choo.

How does a commitment to glamorous style and craftsmanship translate into a concrete strategy to reverse a negative $581 million bottom line, and what does this mean for your investment thesis right now?

Capri Holdings Limited (CPRI) Overview

Capri Holdings Limited, a global fashion luxury group, began its journey in 1981 with American designer Michael Kors. The company, which now has executive offices in London and operational offices in New York, built its foundation on the accessible luxury of the Michael Kors brand before expanding into a multi-brand powerhouse. This structure allows it to capture a diverse consumer base, from aspirational shoppers to high-end couture clients.

The company's core business is the design, marketing, distribution, and retail of branded apparel, footwear, and accessories. Its portfolio is segmented into three iconic houses, each with a distinct market position. For the full fiscal year 2025, which ended in March, the company anticipated total revenue to be in the range of approximately $3.3 to $3.4 billion, reflecting the challenging global retail environment.

• Michael Kors: Ready-to-wear, handbags, watches, and accessories.
• Versace: Haute couture, ready-to-wear, accessories, and home furnishings.
• Jimmy Choo: Luxury footwear, handbags, and small leather goods.

That revenue scale is massive, but the luxury market demands constant strategic focus.

Mapping Fiscal Year 2025 Performance and Near-Term Actions

You're looking for a clear read on performance, and as a realist, I have to be direct: while the overall market softened, the company's recent results show sequential improvement, which is the key trend to watch. Total revenue for the full fiscal year 2025 was projected to be around $3.3 to $3.4 billion, and operating income was expected to be around $100 million. This performance was achieved against a backdrop of softening global demand for fashion luxury goods.

Looking at the most recent data from the second quarter of fiscal year 2026 (ended September 27, 2025), which is the freshest insight we have, the company is showing signs of stabilization. Revenue from continuing operations decreased by a modest 2.5% on a reported basis, which is a better trend than earlier in the year. Importantly, net inventory as of September 27, 2025, was down to $766 million, a 2.8% decrease compared to the prior year, showing diligent inventory management is working.

Here's the quick math on cash flow: the company generated $153 million in free cash flow for the full fiscal year 2025. The near-term action is the strategic pivot: with the sale of Versace expected to close in the fiscal third quarter of 2026, the company is focusing resources on Michael Kors and Jimmy Choo. This move is designed to repay the majority of debt, substantially strengthening the balance sheet and enabling a new $1 billion share repurchase program planned for fiscal year 2027. That's a clear signal of confidence in the remaining brands.

Capri Holdings: A Luxury Powerhouse in Transition

Capri Holdings Limited stands as one of the significant players in the global luxury fashion industry, not just for its scale but for its unique multi-brand strategy that spans different tiers of luxury. While it competes with giants like LVMH and Kering, its strength has always been leveraging shared operational platforms while maintaining the distinct creative DNA of each house. The planned sale of Versace, while a major change, is a decisive move to streamline the business and focus capital on the core growth engines of Michael Kors and Jimmy Choo.

This strategic shift positions Capri Holdings to stabilize its business this year and establish a solid foundation for a return to growth in fiscal year 2027. The company is actively managing its portfolio to maximize returns and organizational performance through an analytical, data-driven approach to the market. To be fair, the current environment is tough, but the company is making clear, actionable moves.

To understand the full implications of this pivot and the underlying financial strength of the remaining enterprise, you should definitely find out more below: Breaking Down Capri Holdings Limited (CPRI) Financial Health: Key Insights for Investors

Capri Holdings Limited (CPRI) Mission Statement

You're looking for the bedrock of Capri Holdings Limited's strategy-the mission that ties together Versace, Jimmy Choo, and Michael Kors. It's not just a plaque on the wall; it's the operating manual for a global luxury group. The core purpose Capri Holdings articulates is straightforward: to be a major global fashion luxury group by uniting desirability and empowerment. This mission is the lens through which they manage a portfolio of distinct brands, aiming for sustained growth and brand elevation across all pillars.

For an investor or a strategist, this mission is crucial because it maps directly to tangible financial goals. Despite a challenging period, the company generated a trailing twelve-month (TTM) revenue of approximately $4.17 billion in 2025, showing the scale of the operation this mission guides. Their dedication to this vision is what drives decisions, from supply chain transparency to market expansion. You can see the full scope of their journey and structure here: Capri Holdings Limited (CPRI): History, Ownership, Mission, How It Works & Makes Money.

Glamorous Style and Craftsmanship: The Quality Imperative

The first concrete component of the mission is the commitment to glamorous style and craftsmanship-the promise of high-quality products. This is where the rubber meets the road for a luxury company; you simply cannot charge a premium without delivering exceptional quality and innovative design.

The proof isn't just in the aesthetics; it's in the supply chain commitments. Capri Holdings has a clear, measurable goal to source at least 95% of its leather from certified tanneries by 2025. This focus on certified sourcing minimizes risk and validates the quality narrative for the discerning luxury consumer. It's a smart move, honestly. Plus, their focus on product innovation and quality is what keeps customers coming back, even when the market is defintely soft. For instance, in fiscal year 2025, the company reported a positive free cash flow of $153 million, which helps fund the continuous investment in superior materials and design.

Brand Elevation and Growth: Fuelling Desirability

The second pillar is Brand Elevation and Growth, which is the business-speak for maintaining desirability and expanding market reach. This means making the brands-Versace, Jimmy Choo, and Michael Kors-more exclusive, more desirable, and ultimately, more profitable. They achieve this by strategically managing brand equity (the value of the brand name itself) and aggressively growing their customer base, especially in high-potential regions.

Here's the quick math on customer acquisition: In the second quarter of fiscal year 2025 alone, the brands collectively added 10.9 million new consumers to their global databases, representing a 13% growth year-over-year. That's a huge number. Breaking it down, Versace's database grew by 1.1 million new consumers (a 16% growth), and Jimmy Choo added 0.7 million new consumers (a 13% growth). This kind of growth in the customer base demonstrates that the strategy of fostering unique identity and creativity within each brand is working to drive future revenue.

• Grow customer database: 10.9 million new consumers in Q2 FY2025.
• Enhance brand prestige: Invest in exclusive retail and innovative designs.
• Target long-term growth: Aiming for Michael Kors revenue to reach $4 billion over time.

Global Luxury Leadership and Responsibility: Extending Influence

The final core component is the commitment to Global Luxury Leadership and Responsibility, which extends the mission beyond the product to the planet and people. A major global player must address its environmental, social, and governance (ESG) footprint, and this is where Capri Holdings maps its near-term risks to clear actions.

The company has set aggressive 2025 goals that directly support this pillar:

• Achieve 100% carbon neutrality in direct operations by 2025.
• Source 100% of energy for owned and operated facilities from renewable sources by 2025.
• Ensure 100% of point-of-sale packaging materials are recyclable or sustainably sourced by 2025.

Also, their commitment to community and diversity is backed by capital. They pledged $20 million to the Capri Holdings Foundation for the Advancement of Diversity in Fashion, showing a real investment in systemic change within the industry. This holistic approach to responsibility is a critical factor for younger, socially-aware luxury buyers, and it's a necessary strategic move to secure their position as a long-term leader in the global luxury market.

Capri Holdings Limited (CPRI) Vision Statement

You're looking for the true north of Capri Holdings Limited, especially as the luxury market shifts and a major brand is being divested. The company's vision isn't a single sentence; it's a commitment to being a global fashion luxury group defined by glamorous style and craftsmanship, powered by the diversity and passion of its people, and driven by a dedication to its clients and communities. This framework maps directly to their strategic and financial challenges right now.

The near-term reality, however, is that for the full fiscal year 2025, the company reported a loss per share of $(5.44), a stark indicator of the pressure on their luxury houses. Here's the quick math: that loss, largely due to a non-cash tax valuation allowance charge, reflects the difficulty of maintaining premium margins while total revenue decreased by 15.4% on a reported basis for the full year. It's a tough environment.

Iconic Brands, Glamorous Style, and Craftsmanship

This is the product-market core-the promise of exceptional, innovative products across the full luxury spectrum. The challenge is that this vision is being tested by softening global demand, which is why the fourth quarter of fiscal 2025 saw total revenue drop to $1.0 billion. The brand-level performance shows where the pressure is heaviest, and where action is defintely needed.

• Versace's Q4 revenue fell 21.2% to $208 million.
• Michael Kors' Q4 revenue decreased 15.6% to $694 million.
• Jimmy Choo's Q4 revenue saw a smaller dip of 2.9% to $133 million.

The strategic action on the Versace brand-the definitive agreement to sell it to Prada Group for $1.375 billion in cash-is a seismic shift. This move isn't just about shedding a brand; it's about using the proceeds to reduce the net debt of $1.3 billion reported as of March 29, 2025, and refocusing capital on the two remaining iconic houses, Michael Kors and Jimmy Choo. It's a calculated retreat to stabilize the balance sheet and fund future growth, but it does narrow the portfolio's luxury market exposure.

Diversity and Passion of Our People

The second pillar of the vision centers on the internal engine: the unique DNA of each brand and the people who drive it. Capri Holdings views Diversity and Inclusion as key values, recognizing that a diverse workforce is critical to the success of luxury brands that serve a global clientele. They aren't just talking about it, though.

In 2021, the company formed the Capri Holdings Foundation for the Advancement of Diversity in Fashion, pledging $20 million to further its mission. This investment is an operational commitment to building a more inclusive talent pipeline and fostering an environment where employees and customers are respected and valued. It's a smart long-term investment in brand equity and talent retention, especially in a sector where brand image is everything.

Dedication to the Clients and Communities We Serve

This final component extends the vision outward, focusing on social responsibility and sustainability, which is increasingly non-negotiable for luxury consumers. Capri Holdings has set clear, aggressive environmental goals that tie directly to their operational footprint. They have a public commitment to become 100% carbon neutral in their direct operations and to source 100% of energy for their owned and operated facilities from renewable sources by 2025. Achieving this goal is a critical benchmark for the brand's ethical standing.

The focus on the community also includes a dedication to clients, evidenced by the 10.9 million new consumers added across their databases in a recent fiscal period, representing 13% growth year-over-year. This shows the brands still resonate, even if the conversion to revenue is currently challenging. If you're looking to dig deeper into the current operating environment and the financial implications of these strategic shifts, you need to check out Breaking Down Capri Holdings Limited (CPRI) Financial Health: Key Insights for Investors. The bottom line is that while the vision is sound, the execution in a difficult market, coupled with a major divestiture, requires laser focus on Michael Kors and Jimmy Choo to deliver the expected return to growth in fiscal 2027.

Capri Holdings Limited (CPRI) Core Values

You're looking for the bedrock of a global luxury group, the principles that guide a company like Capri Holdings Limited as they navigate a challenging market, especially with the full-year Fiscal Year 2025 revenue landing at around $4.4 billion. The core values aren't just posters on a wall; they are the strategic pillars supporting their iconic brands-Versace, Jimmy Choo, and Michael Kors-and they map directly to their operational focus and financial health.

Honestly, understanding these values is how you project future performance. The company's focus is on elevating brand equity, driving sustainability, and strengthening their community commitment, all while aiming for a long-term goal of $6.3 billion in total revenue.

Commitment to Glamorous Style and Craftsmanship

This value is the fundamental product promise: delivering exceptional, innovative luxury goods. It's the core DNA of all three brands, ensuring that the luxury positioning is maintained even when market conditions soften. The company's reputation is built on this dedication to craftsmanship, which is non-negotiable for luxury consumers.

In Fiscal Year 2025, this commitment was tested by an overall revenue decrease, but the strategic focus remained on brand elevation. Michael Kors, the largest segment, was still projected to deliver $3.0 billion in revenue for the year, demonstrating the enduring market demand for its core offerings when the product is right. This isn't just about selling clothes; it's about protecting the prestige that allows a company to command a premium price. You can read more about how this focus has shaped the company's trajectory here: Capri Holdings Limited (CPRI): History, Ownership, Mission, How It Works & Makes Money.

Environmental Responsibility (Our World)

Capri Holdings has made its environmental stance a clear, quantifiable core value, with a significant number of targets set to be met in 2025. This isn't just talk; it's a hard deadline for operational change. The financial risk of ignoring climate change is real, so this focus is fiscally responsible, too.

The company committed to achieving two major goals in its direct operations by the end of 2025:

• Become 100% carbon neutral in direct operations.
• Source 100% of energy for owned and operated facilities from renewable sources.

Plus, their supply chain commitment for 2025 includes sourcing at least 95% of their leather from certified tanneries, which is a major move given that leather is a key raw material in their footwear and accessories categories. This transparency is what institutional investors now demand.

Community and Inclusion (Our People)

A luxury group's strength is tied directly to the diversity and passion of its people and its dedication to the communities it operates in. The company recognizes that a strong social foundation is critical, particularly in a consumer-facing industry where brand perception is everything. This value is operationalized through both internal employee initiatives and external philanthropy.

For example, the Michael Kors Watch Hunger Stop program, a long-standing philanthropic effort, has already delivered over 19 million meals to children in hunger-stricken areas globally. Internally, the company established a Global Diversity and Inclusion (D&I) Council to further D&I within the organization, aligning their workforce with the diverse global luxury consumer base. This focus helps mitigate human capital risk, which is often overlooked in financial models.

Financial Performance and Strategic Growth

The core value of financial performance is a commitment to shareholders, evident in the company's strategic initiatives aimed at delivering revenue and earnings growth. For Fiscal Year 2025, the adjusted operating margin was projected at a tight 2.3%, showing the pressure on profitability, but the long-term goal remains clear: return to growth.

The strategic move to sell Versace to Prada Group for $1.375 billion in cash, expected to close in the second half of calendar 2025, is a concrete action driven by this financial value. Here's the quick math: this sale is intended to reduce debt and free up capital to invest in the future growth of Michael Kors and Jimmy Choo, which is a clear, decisive action to improve the balance sheet and future operating margins. That's a defintely a risk-mitigating move.