Capri Holdings presented a mixed picture in the results for the third fiscal quarter of 2026: overall revenue decline, but profitability shows signs of recovery. The group, now focused on Michael Kors and Jimmy Choo following the sale of Versace, closes the period with lower sales but improving operating margins. The market reacted with volatility, initially penalizing the stock before it recovered ground. CEO John Idol, however, maintains an optimistic outlook and reiterates confidence in the turnaround strategies for the two remaining brands in the portfolio. Here is, in detail, how Capri Holdings’ quarter went.
Capri Holdings’ quarter
The group’s main brand, Michael Kors, continues to go through a challenging phase: quarterly sales fall by 5.6% at current exchange rates, standing at 727 million euro, with margins also under pressure, and gross profit declining. Operating income decreased compared to the previous year, confirming a trend that has been ongoing for several quarters.
By contrast, Jimmy Choo’s performance moved in the opposite direction, posting 5% growth and reaching 141 million euros in revenue. The brand also improved profitability, returning to positive territory with an operating profit of 3 million euros after the loss recorded the previous year. The result confirms the strength of its positioning in the luxury fashion segment and the market’s positive response to recent collections.
Profitability recovering
Despite the decline in revenue, Capri Holdings closed the quarter with operating income rising to 39 million euros, almost double compared to the previous year. The operating margin increased to 4.5%, while adjusted net income reached 83 million. A key factor was also the improvement in the financial structure: thanks to the sale of Versace, the group drastically reduced its debt, bringing it down to just 80 million dollars.
As reported in the group’s statement, for the full 2026 fiscal year Capri expects revenue between 3.45 and 3.475 billion and earnings per share between 1.30 and 1.40 dollars. “We are pleased with the third-quarter performance, which exceeded our expectations. For both Michael Kors and Jimmy Choo, we continue to advance our strategic initiatives to position our iconic brands for long-term success. Looking ahead, we are confident that these strategies will support a return to growth in fiscal year 2027”, emphasized John Idol.
Photo from Capri Holdings
Read also:
