Capri Holdings expects to return to sales growth next fiscal year after a long period of declines, as both of its brands, Michael Kors and Jimmy Choo, reported improvements in the fourth quarter.

The company forecasts a low single-digit revenue growth in FY27 after seeing the progress made by its strategic initiatives.

“A year ago, our priority was to stabilize the business and create a stronger foundation for growth. Today, we are building upon the improving trends resulting from the success of our strategic initiatives,” said chairman and CEO John D Idol.

“Throughout the year, we took deliberate actions to strengthen product innovation, brand desirability and consumer engagement and we see clear evidence that these efforts are resonating with consumers,” he added.

In the quarter ended March 28, Capri’s revenue fell 3.7 per cent to $796 million (down 7 per cent in constant currency). 

Michael Kors sales fell 5.5 per cent, a slight improvement from a 5.6 per cent drop in the third quarter. Jimmy Choo revenue rose 5.3 per cent, compared to a 5 per cent uplift in Q3.

Operating loss went down from $57 million a year ago to $27 million, and net loss reduced from $580 million to an “immaterial” amount.

For the full year, the company’s revenue decreased 4 per cent to $3.47 billion, while a net loss of $526 million was replaced by net income of $80 million.

“Longer term, we expect to grow Michael Kors revenue to $4 billion and Jimmy Choo revenue to $800 million while significantly increasing profitability.

“With a strengthened foundation and clear strategic priorities, we are well positioned to accelerate growth, enhance profitability and deliver sustainable long‑term value for our shareholders,” added Idol.