Capri Holdings refocuses on Michael Kors and Jimmy Choo
“We are encouraged by our second quarter results. Trends continued to improve sequentially, which resulted in revenue, gross margin and operating income exceeding our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energize our fashion luxury houses”, commented John D. Idol, the Company’s Chairman and Chief Executive Officer.
Second Quarter Results
In the second quarter of the 2026 financial year, which ended on the 27th of September, Capri Holdings’ revenue totalled 856 million US dollars. This reflects a decrease of 2.5% (or 4.2% on a constant currency basis), as compared to the same period of the previous financial year, representing an improvement on the 6.0% decrease (or 7.7% on a constant currency basis) recorded in the first quarter.
In the second quarter of the current financial year, the company’s gross margin was 61.0%, down from 62.3% in the same quarter of the 2025 financial year. This decline reflects the negative impact of tariffs, which equates to approximately 130 basis points.
Capri Holdings reported a loss from operations of 12 million US dollars in the second quarter, as compared to a loss of 6 million US dollars in the same period a year ago. However, this represents an improvement on the 16 million US dollar loss recorded in the previous quarter of this year. Adjusted income from operations was 20 million US dollars, as compared to an adjusted loss of 37 million US dollars in the same period a year ago.
The company also reported an adjusted net loss of 4 million US dollars, down from 76 million US dollars in the second quarter of the previous year. This adjusted result includes a negative impact stemming from a higher-than-anticipated effective tax rate, which was due to the company’s valuation allowance position. GAAP net loss stood at 34 million US dollars, as compared to net income of 42 million US dollars.
Post-Versace
“With the Versace sale expected to close in our fiscal third quarter, we are now fully focused on the growth of our two iconic brands Michael Kors and Jimmy Choo. We plan to use the proceeds of the sale to repay the majority of our debt, substantially strengthening our balance sheet and providing greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future”, added Idol.
Michael Kors contributed 725 million US dollars to total revenue in the second quarter, a year-on-year 1.8% decrease (or a 3.3% decrease on a constant currency basis) and Jimmy Choo contributed 131 million US dollars, a year-on-year 6.4% decrease (or a 9.3% decrease on a constant currency basis).
For the full year 2026, Capri Holdings expects a total revenue of approximately 3.375 to 3.45 billion US dollars and an operating income of approximately 100 million US dollars.
The CEO concluded: “Looking ahead, we continue to expect retail trends to improve in the back half of fiscal 2026 positioning us to return to growth in fiscal 2027. Longer term we remain optimistic about the sustainable growth potential of both Michael Kors and Jimmy Choo”.
Image Credits: row.jimmychoo.com