Capri Holdings Reports Fiscal 2026 Second Quarter Results

New York, Capri Holdings Limited (NYSE: CPRI), a global luxury fashion group, announced its financial results for the second quarter of Fiscal 2026, ended September 27, 2025. Despite a modest decline in revenue, the company reported stronger-than-expected gross margins and operating income, signaling continued progress on its strategic transformation.

Second Quarter Highlights

Revenue: $856 million, down 2.5% year-over-year (4.2% in constant currency)
Operating Margin: (1.4)% reported; 2.3% adjusted
Loss Per Share: $(0.28) reported; $(0.03) adjusted
Net Inventory: $766 million, a 2.8% decrease year-over-year
Free Cash Flow: $(46) million

John D. Idol, Chairman and CEO of Capri Holdings, said,

We are encouraged by our second quarter results. Revenue, gross margin, and operating income exceeded our expectations, reflecting the momentum from our strategic initiatives to energize our fashion luxury houses.

Strategic Developments

Idol emphasized that Capri Holdings is entering a new phase of growth as it prepares to complete the sale of Versace to Prada S.p.A. for approximately $1.375 billion. The transaction, expected to close in the fiscal third quarter, will allow the company to focus on its two remaining luxury brands—Michael Kors and Jimmy Choo.

Proceeds from the Versace sale will be used primarily to repay debt, significantly strengthening Capri Holdings’ balance sheet. Additionally, the Board of Directors has approved a $1 billion share repurchase program to be implemented in fiscal 2027.

With improving retail trends and a stronger balance sheet, we’re well-positioned to return to growth in fiscal 2027,” Idol said. “We remain confident in the long-term potential of Michael Kors and Jimmy Choo.

Financial Performance Overview

Capri Holdings’ gross profit for the quarter was $522 million, representing a gross margin of 61.0%, compared to 62.3% a year earlier. Tariffs negatively impacted margins by roughly 130 basis points.
Operating loss was $12 million, compared to a loss of $6 million last year. On an adjusted basis, operating income was $20 million, reflecting an operating margin of 2.3%.

The company reported a net loss of $34 million, or $(0.28) per share, compared with net income of $42 million in the prior year. The adjusted loss per share was $(0.03), affected by a higher-than-expected effective tax rate.
Cash and cash equivalents totaled $120 million, with total borrowings of $1.76 billion, resulting in net debt of $1.64 billion.

Brand Performance

Michael Kors

Revenue: $725 million, down 1.8% reported and 3.3% in constant currency
Gross Margin: 59.3%
Operating Income: $73 million (10.1% margin)

Jimmy Choo

Revenue: $131 million, down 6.4% reported and 9.3% in constant currency
Gross Margin: 70.2%
Operating Loss: $9 million, reflecting a (6.9)% margin

Outlook

For Fiscal 2026, Capri Holdings expects:

Revenue: $3.375 – $3.45 billion
Operating Income: Around $100 million
Diluted EPS: $1.20 – $1.40
Capital Expenditures: ~$110 million

By brand, Michael Kors is expected to generate $2.8 – $2.875 billion in revenue with a high single-digit operating margin, while Jimmy Choo is projected to deliver $565 – $575 million with a negative mid-single-digit margin.

For the third quarter of Fiscal 2026, Capri anticipates:

Revenue: $975 million – $1.0 billion
Operating Margin: 7% – 8%
Diluted EPS: $0.70 – $0.80

The company cautioned that results may be affected by global economic factors, inflationary pressures, tariffs, and foreign currency fluctuations.

Conference Call Details

Capri Holdings will host a conference call to discuss these results on November 4, 2025, at 8:30 a.m. ET. A live webcast and replay will be available at www.capriholdings.com, with telephone replay access until November 11, 2025.

About Capri Holdings Limited

Capri Holdings Limited is a global luxury fashion group that owns and operates Michael Kors, Jimmy Choo, and Versace. The company is known for its commitment to design excellence, craftsmanship, and innovation across its fashion and accessories portfolio. Capri Holdings trades on the New York Stock Exchange under the ticker symbol CPRI.

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