Companies

Capri Holdings returns to profit in the second quarter

Nov 3, 2026 United States

Despite lower overall revenue, the US-based luxury brand returned to profitability in the second quarter of the 2027 financial year, supported by improved margins and growth at Jimmy Choo

“We are encouraged by the momentum building at both Michael Kors and Jimmy Choo. Throughout the second quarter, trends improved sequentially each month across both of our luxury houses, reflecting the actions we have taken to sharpen our product assortments, elevate brand desirability and strengthen consumer engagement”, commented John D. Idol, the company’s Chairman and Chief Executive Officer.

Second-Quarter Results

In the second quarter of the 2027 financial year, Capri Holdings recorded a total revenue of 809 million US dollars. This represents a 5.5% decrease (or a 4.9% decrease on a constant currency basis) compared to the same period in the previous financial year. Approximately 20 million US dollars of revenue was attributable to the earlier-than-anticipated timing of wholesale shipments.

Michael Kors contributed 663 million US dollars to the total revenue for the second quarter, down by 8.6% (or by 8.0% on a constant currency basis) year-on-year. Meanwhile, Jimmy Choo contributed 146 million US dollars, up by 11.5% (or 12.2% on a constant currency basis).

In the second quarter of this financial year, the company’s gross margin was 63.3%, compared to 61.0% in the same quarter of the previous financial year. This 230-basis-point improvement was mainly driven by higher full-price sell-throughs and a better brand mix, as well as lower tariff rates compared to the second quarter of fiscal 2026.

Capri Holdings reported operating income of 10 million US dollars in the second quarter, compared with an operating loss of 12 million US dollars a year earlier, while its operating margin improved to 2.1% from -1.4%. Adjusted operating income rose to 31 million US dollars from 20 million US dollars, with the adjusted operating margin increasing to 3.8% from 2.3%.

In the three months to the 26^th of September, the company’s net income was 27 million US dollars, or 0.25 US dollars per diluted share, compared to a net loss of 34 million US dollars, or -0.28 US dollars per diluted share, in the same quarter a year ago. Adjusted net income was 45 million US dollars, or 0.42 US dollars per diluted share, compared to an adjusted loss of 4 million US dollars, or -0.03 US dollars, in the same quarter a year ago.

Full-Year Outlook

Capri Holdings now expects a total full-year revenue of approximately 3.42 billion US dollars, which is slightly up from the previous guidance of 3.4 billion US dollars. Full-year diluted earnings per share are expected to be approximately 2.20 US dollars, which is also up from the previous guidance of 2.15 US dollars.

“Looking ahead, we continue to expect total company revenue to return to growth in the second half of fiscal 2027, supported by exciting new collections, increased marketing investments and our focus on elevating the consumer experience”, added John D. Idol.

Image Credits: retailboss.co

United States Capri Companies Luxury Quarter Results Results