CPRIHIGH SIGNALFINANCIAL10-K

CPRI terminated its merger agreement with Tapestry and experienced substantial financial deterioration with stockholders' equity declining 77% and revenue falling 14.1%.

The collapse of the Tapestry merger represents a major strategic setback that coincided with meaningful operational challenges across the business. The dramatic reduction in stockholders' equity signals significant balance sheet stress, while declining revenues indicate core business headwinds that may have contributed to the failed transaction.

Comparing 2025-05-28 vs 2024-05-29View on EDGAR →
FINANCIAL ANALYSIS

CPRI's financial position deteriorated meaningfully across key metrics, with stockholders' equity falling 77% and total assets declining 22.1%, indicating substantial balance sheet compression. Revenue declined 14.1% with corresponding gross profit reduction of 15.4%, while the company sharply reduced capital expenditure and share buybacks. The overall picture suggests a company under financial stress following strategic disappointments, though debt reduction of 12.9% provides some balance sheet relief.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-96.3%
$107.0M→$4.0M

Buyback activity reduced 96.3% — capital being redeployed elsewhere or cash conservation underway.

Stockholders Equity
Balance Sheet
-77%
$1.6B→$368.0M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Interest Expense
P&L
-74.2%
$1.5M→$393K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Capital Expenditure
Cash Flow
-32.3%
$189.0M→$128.0M

Capex reduced 32.3% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Total Assets
Balance Sheet
-22.1%
$6.7B→$5.2B

Total assets contracted 22.1% — asset sales, write-downs, or balance sheet optimization underway.

Current Liabilities
Balance Sheet
-21.2%
$1.7B→$1.3B

Current liabilities reduced — improved short-term financial position and working capital health.

Cash & Equivalents
Balance Sheet
-16.6%
$199.0M→$166.0M

Cash decreased 16.6% — monitor burn rate and upcoming capital needs.

Gross Profit
P&L
-15.4%
$3.3B→$2.8B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Revenue
P&L
-14.1%
$5.2B→$4.4B

Revenue softened 14.1% — monitor whether this is cyclical or structural.

Total Debt
Balance Sheet
-12.9%
$1.7B→$1.5B

Debt reduced 12.9% — deleveraging strengthens balance sheet and reduces financial risk.

LANGUAGE CHANGES
NEW — 2025-05-28
PRIOR — 2024-05-29
ADDED
As of May 23, 2025, Capri Holdings Limited had 117,920,594 ordinary shares outstanding.
(the Merger ) , the termination of the Agreement and Plan of Merger (the Merger Agreement ) with Tapestry, Inc.
and/or public disclosures related thereto, as well as those risks that are set forth in Part I, Item 1A.
Risks Related to Our Industry we may not be able to respond to changing fashion and retail trends in a timely manner, which could have a material adverse effect on our brands, business, results of operations and financial condition; and the markets in which we operate are highly competitive, both within North America and internationally, and increased competition based on a number of factors could cause our profitability and/or gross margins to decline.
The fiscal years ending on March 29, 2025, March 30, 2024 and April 1, 2023 ( Fiscal 2025 , Fiscal 2024 and Fiscal 2023 , respectively) contain 52-weeks.
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REMOVED
As of May 22, 2024, Capri Holdings Limited had 116,649,222 ordinary shares outstanding.
Please consult these documents for a more complete understanding of these risks and uncertainties.
Risks Related to the Merger we are subject to litigation challenging the Merger, including the lawsuit by the U.S.
FTC attempting to block the pending Merger, and an unfavorable judgment or ruling in any such lawsuits could prevent or delay the consummation of the Merger and/or result in substantial costs and otherwise have a material adverse impact on our business and our share price; the pendency of the Merger could adversely affect our business, financial results and operations; and failure to complete the pending Merger could adversely affect our business and the market price of our ordinary shares.
Risks Related to Macroeconomic Conditions the accessories, footwear and apparel industries are heavily influenced by general macroeconomic cycles that affect consumer spending and a prolonged period of depressed consumer spending could have a material adverse effect on our business, results of operations and financial condition; and the COVID-19 pandemic may adversely affect our business and results of operations.
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