Capri Holdings Takes a 15.4% Revenue Hit as Luxury’s Post-Pandemic Glow Fades

Luxury is having an “it’s not you, it’s the economy” moment. Capri HoldingsCPRI

— the holding firm behind Michael Kors, Jimmy Choo, and Versace — just reported a brutal 15.4% revenue drop in its fourth-quarter fiscal 2025 earnings, citing tariff uncertainty and currency headwinds. This meltdown reflects a broader luxury sector crisis, where pandemic-era aggressive price hikes are finally catching up with brands.

• CEO John Idol said, “Fiscal 2025 was a challenging year for Capri” and warned that first-quarter adjusted revenue is expected to fall between $765M and $790 —, down from last year’s $1.07B.
• Despite the revenue carnage, Capri projects adjusted earnings per share of $1.20 to $1.40, ahead of analyst estimates of $1.02 per share.

Greedflation’s reckoning: The luxury sector is learning a costly lesson about pandemic-era greed as that pricing strategy has backfired — brands that leaned hardest into pandemic-era price hikes are now seeing the steepest sales declines. Between 2020 and 2023, prices rose by an average of 36% — double the rate of US inflation — but Chanel and Dior went further, with increases of 59% and 51%, respectively. Meanwhile, more restrained players like Hermès and Richemont, which showed pricing discipline, continue to post healthy 7% sales growth while their competitors stumble. As Richemont Chairman Johann Rupert noted, “We weren’t greedy two or three years ago and I think our results today reflect that.”