Capri has narrowed down its focus on Michael Kors fashion brand, while jettisoning the underperforming Versace label to Italian rival Prada following a failed attempt to merge with rival and Coach-parent Tapestry last year.

"We are confident in our ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million over time, while restoring operating margin to the double-digit range," Capri Chief Executive Officer John Idol said.

Shares of the New York-based firm, however, fell about 2% in premarket trading as Capri posted a wider-than-expected loss. Michael Kors revenue fell 15.6% to $694 million for the quarter.

Consumers in North America have scaled back spending on high-end goods as they worry about having to pay more in the coming months for all kinds of products as tariff-related uncertainty weighs on global trade.

The company now expects total annual revenue in the range of $3.3 billion to $3.4 billion.

The forecast, which excludes sales from Versace brand, does not account for changes in global macroeconomic conditions, tariff rates, higher inflation or weakening consumer confidence, Capri said.

For the quarter ended March 29, revenue dropped 15.4% to $1.04 billion, compared with analysts' average estimate of a 19.3% decline to $986.57 million, according to data compiled by the London Stock Exchange.

It posted a loss of 30 cents per share on an adjusted basis, compared to estimates of a loss of 15 cents.

--Reuters--