02:08 PM EST, 02/20/2025 (MT Newswires) -- (Updates with details starting from the second paragraph and the latest share movement in the headline and last paragraph.)

Capri (CPRI), the parent company of Versace and Michael Kors, was downgraded two notches to BB from BBB- by S&P Global Ratings to reflect the company's "weak" operating performance over the past two years and expectations of negative sales trends in the coming year, S&P Global Ratings said Thursday.

The rating agency also gave Capri a negative outlook for the risks in its plans to turn around the business in a cost-effective manner. S&P said the rating may be lowered further if the company's brands continue to "falter."

The credit rating agency also said it revised its management and governance score to moderately negative from positive as it noted the management's "lack of strategic initiative while performance deteriorated amid the Tapestry deal."

Capri reported fiscal Q3 revenue of $1.26 billion, down from $1.43 billion a year earlier. S&P Global said revenue fell 15% for Versace, 12.1% for Michael Kors, and 4.2% for Jimmy Choo.

Capri shares were down more than 3% in recent trading.

Price: 21.79, Change: -0.79, Percent Change: -3.50