“We are encouraged by our first quarter results. Trends improved sequentially leading to both revenue and earnings per share that exceeded our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energize our fashion luxury houses. While still early, we are beginning to see signs that our strategies are working”, commented John D. Idol, the company's Chairman and Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2026, which ended on the 28^th of June, Capri’s total revenue amounted to 797 million US dollars, a decrease of 6.0% (or 7.7% on a constant currency basis), as compared to the same period of the last fiscal year.

During this period, Michael Kors contributed 635 million US dollars to total first quarter revenue, reflecting a 5.9% year-on-year decline (or 7.3% on a constant currency basis). Meanwhile, Jimmy Choo’s revenue amounted to 162 million US dollars, reflecting a 6.4% year-on-year decline (or 9.2% on a constant currency basis).

Versace, whose acquisition by Prada is expected to be finalised in the second half of the 2025 calendar year, has been classified as a discontinued operation in its consolidated statements of operations.

In the first quarter of the current year, Capri’s gross profit was 502 million US dollars, with a gross margin of 63.0%. This is comparable to the first quarter of fiscal 2025, when gross profit was 535 million US dollars and the gross margin was 63.1%.

The luxury group’s first quarter income from operations was 16 million US dollars, with an operating margin of 2.0%, as compared to 11 million US dollars and 1.3% in the same quarter of last fiscal year. Adjusted income from operations was 20 million US dollars, with an adjusted operating margin of 2.5%, as compared to 31 million US dollars and 3.7% in the same quarter of last fiscal year.

Capri Holdings also reported a first quarter net income of 56 million US dollars, or 0.47 US dollars per diluted share, on a comparable basis to a net income of 5 million US dollars, or 0.03 US dollars per diluted share, in the same period of fiscal year 2025. Adjusted net income was 60 million US dollars, or 0.50 US dollars per diluted share, on a comparable basis to 18 million US dollars, or 0.16 US dollars per diluted share, in the same period of fiscal year 2025.

As of the 28^th of June, Capri Holdings’ net inventory increased by 10.8% to 779 million US dollars, mainly due to the receipt of products earlier than planned and the impact of currency and tariffs, while net debt remained stable at 1.5 billion US dollars.

Full Year Outlook

On the 6^th of August, Capri Holdings issued full year guidance accounting for incremental US tariffs on goods imported from the European Union (15%), Cambodia and Indonesia (19%), Bangladesh and Vietnam (20%), India (25%), and China (30%). However, this could significantly differ due to macroeconomic changes, higher-than-expected tariffs, inflation, weaker consumer confidence or currency fluctuations.

The group expects full year total revenue of approximately between 3.375 and 3.45 billion US dollars, operating income of 100 million US dollars, and diluted earnings per share in the range of 1.20 to 1.40 US dollars.

Image Credits: fashiongonerogue.com