Companies

Capri Holdings returns to profitability despite annual revenue decline

Jun 1, 2026 United States

Despite lower revenue, the US-based luxury group behind Michael Kors and Jimmy Choo has reported a return to profitability in fiscal 2026, reflecting gains from its strategic turnaround initiatives

“Looking at fiscal 2026 we were encouraged by the progress we made executing against the strategic initiatives introduced last year to maximize the full potential of our two iconic fashion luxury houses, Michael Kors and Jimmy Choo”, John D. Idol, the company’s Chairman and Chief Executive Officer, said.

In the 2026 fiscal year, which ended on the 28^th of March, Capri Holdings reported a total revenue of 3.47 billion US dollars, down from 3.62 billion US dollars in the previous fiscal year. However, the company also declared a net income of 80 million US dollars from continuing operations, compared to a loss of 526 million US dollars in fiscal 2025.

Fourth-Quarter Results

In the fourth quarter of last year, the company’s total revenue was 796 million US dollars. This was a decrease of 3.7% (or 7.0% on a constant currency basis), on a comparable basis to the same quarter the previous year.

Compared to the fourth quarter of the 2025 fiscal year, Michael Kors generated a revenue of 656 million US dollars, a decrease of 5.5% (or 8.4% on a constant currency basis), while Jimmy Choo generated a revenue of 140 million US dollars, a 5.3% increase (flat on a constant currency basis).

The company’s gross profit in the fourth quarter increased to 516 million US dollars, up from 495 million US dollars in the same period of the prior year. The gross margin also improved, reaching 64.8%. This was partly supported by an estimated tariff refund benefit of 40 million US dollars.

Capri Holdings saw an improvement in its operating performance during the quarter, narrowing its operating loss to 27 million US dollars from 57 million US dollars a year earlier. On an adjusted basis, the operating loss fell to 1 million US dollars, compared with 15 million US dollars in the same period a year earlier.

Ultimately, the company nearly broke even at the net income level, reporting an immaterial net loss of 0.01 US dollars per diluted share, compared with a net loss of 580 million US dollars, or 4.90 US dollars per share, a year earlier.

Adjusted net income reached 27 million US dollars in the fourth quarter (0.22 US dollars per diluted share), compared with an adjusted net loss of 538 million US dollars (4.55 US dollars per share) in the same quarter last year.

Following the disposal of Versace, the group strengthened its balance sheet, reducing net debt to 222 million US dollars and generating 134 million US dollars in free cash flow during the 2026 financial year.

Fiscal 2027 Outlook

“A year ago, our priority was to stabilize the business and create a stronger foundation for growth. Today, we are building upon the improving trends resulting from the success of our strategic initiatives”, John D. Idol highlighted.

Looking ahead, Capri forecasts a full-year revenue of around 3.53 billion US dollars in fiscal 2027, which is a growth in the low single digits. The company also anticipates operating income of around 190 million US dollars and diluted earnings per share of approximately 2.25 US dollars.

Image Credits: fashiongonerogue.com

United States Capri Companies Luxury Quarter Results Results