Capri Holdings (CPRI) Goldman Sachs Global Consumer and Retail Conference summary

Key strengths and market outlook

• Two globally resonant luxury brands, Michael Kors and Jimmy Choo, are positioned for growth after 18 months of strategic resets in product and marketing.

• Early signs of recovery are visible, with tangible results from new strategies and optimism for accelerated growth in the back half of the year.

• The luxury accessories market is expected to return to growth next year, with North America strong, Europe challenged, and Asia, especially China, showing steady recovery.

• Consumers are increasingly value-focused, seeking quality and price balance rather than just low prices.

Michael Kors brand transformation

• Brand repositioning focuses on refreshed marketing, trend-right product, and enhanced store experiences, with early positive results.

• Inventory normalization and reduced promotional activity are driving higher average unit retails (AURs) and full price sell-throughs.

• Iconic products like the Hamilton and Nolita handbags are resonating, especially with younger consumers, and new introductions are fueling growth.

• Renovated stores are seeing double-digit increases in traffic and sales, with plans to renovate half the global fleet over 2–3 years.

• Marketing spend is increasing, leveraging digital platforms and influencers, with strong engagement from younger demographics.

Financial and operational outlook

• Expectation of a return to growth for Michael Kors in the second half, supported by new product launches and increased marketing investment.

• Margin improvement is targeted through higher full price sales, reduced promotions, and disciplined SG&A management.

• Wholesale and outlet channels are benefiting from product resets and strategic pricing, with department stores re-engaging.

• Store renovations and experiential elements like Jet Set Lounges are enhancing customer engagement and sales.