Highlights

  • Capri Holdings reported second-quarter fiscal 2027 Revenue of US$809 million, down 5.5% from US$856 million a year earlier.
  • Gross Margin widened 230 basis points to 63.3% on stronger full-price sell-throughs, Brand mix and lower tariffs.
  • Jimmy Choo revenue rose 11.5% to US$146 million, while Michael Kors revenue declined 8.6% to US$663 million.
  • The company repurchased about 10.3 million shares for US$150 million, leaving US$721 million under its buyback authorization.

Wider margins and a strengthening Jimmy Choo Business have returned Capri Holdings Limited (NYSE:CPRI) to quarterly profit, and the luxury fashion group has raised its full-year outlook. On 30 October 2026, the owner of Michael Kors and Jimmy Choo reported revenue of US$809 million for the second quarter of fiscal 2027, ended 26 September 2026, down 5.5% on a reported basis and 4.9% in constant currency.

Despite lower sales, the company posted Net Income from continuing operations of US$27 million, or US$0.25 per diluted share, compared with a net loss of US$34 million, or US$0.28 per share, a year earlier. Adjusted diluted earnings per share, a non-GAAP measure, were US$0.42 against a loss of US$0.03. About US$20 million of revenue moved into the second quarter from the third as wholesale shipments arrived earlier than planned.

Margin Expansion Offsets Softer Michael Kors Sales

Gross profit reached US$512 million, with gross margin rising to 63.3% from 61.0%. Reported Operating Income was US$10 million, a 1.2% margin, compared with an operating loss of US$12 million a year earlier. Adjusted operating income climbed to US$31 million, lifting the adjusted Operating Margin to 3.8% from 2.3%.

Michael Kors revenue fell 8.6% to US$663 million, yet the brand's operating income margin edged up to 10.3% as gross margin improved to 61.5%. Jimmy Choo revenue increased 11.5% to US$146 million, and the brand turned an operating loss of US$9 million into operating income of US$2 million. By region, Americas revenue declined to US$447 million while EMEA held steady.

A Leaner Balance Sheet After the Versace Sale

Capri completed the sale of Versace to Prada on 2 December 2025, and Versace is now reported as discontinued operations. At the end of the quarter, net Debt stood at US$336 million, compared with US$1.6 billion a year earlier, while cash and equivalents were US$125 million and inventory was down 7% at US$712 million.

Operating cash flow for the quarter was US$51 million and free cash flow was US$36 million. Share repurchases of US$150 million reduced shares outstanding to 103.3 million from 119.1 million a year earlier. The store base fell to 860 locations from 907.

Raised Guidance and a Targeted Second-Half Return to Growth

Management now expects fiscal 2027 revenue of about US$3.42 billion, adjusted operating income of about US$175 million and adjusted Diluted Earnings per Share of about US$2.20. It continues to expect total company revenue to return to growth in the second half of the fiscal year, supported by new collections, higher Marketing Investment and a focus on customer experience.

For the third quarter, the company projects revenue of about US$1.005 billion, adjusted operating income of about US$90 million and adjusted diluted earnings per share of about US$0.95. Chairman and Chief Executive Officer John D. Idol said trends improved sequentially in each month of the quarter. Separately, Capri appointed Catherine So as Chief Legal and Sustainability Officer in September 2026.