Capri Holdings Limited Reports Second Quarter Fiscal 2027 Results
Capri Holdings Ltd (CPRI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Capri Holdings Limited Reports Second Quarter Fiscal 2027 Results Revenue, Operating Income and Earnings Per Share Exceed Expectations Company Increases Full Year Outlook London — October 30, 2026 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, t
How this was made
The 30-second read
Why it matters
The company provided full-year FY2027 outlook on an adjusted, non-GAAP basis, alongside Q2 margin and EPS results, which can re-anchor investor expectations for luxury demand and profitability.
Market read
Traders can update positioning based on the new Q2 datapoints and the company’s stated FY2027 revenue, operating income, and EPS outlook under tariff and FX assumptions.
What to watch
The filing notes revenue timing from earlier wholesale shipments and includes discontinued Versace operations, which can complicate trend interpretation versus continuing operations only.
Revenue, Operating Income and Earnings Per Share Exceed Expectations; Company Increases Full Year Outlook
Second-quarter revenue decreased 5.5%, led by an 8.6% decline at Michael Kors, while gross margin expanded 230 basis points and continuing-operations income, adjusted operating income and adjusted EPS improved from the prior year. The company increased its full-year outlook and generated $36 million of free cash flow, but total revenue remains below the prior-year period.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 26, 2026GAAP | $809M | – | decreased 5.5% |
| Total revenue constant currency change, three months ended September 26, 2026non-GAAP | decreased 4.9% | – | decreased 4.9% |
| Gross profit, three months ended September 26, 2026GAAP | $512M | – | – |
| Gross margin, three months ended September 26, 2026GAAP | 63.3% | – | 230 basis point increase |
| Total operating expenses, three months ended September 26, 2026GAAP | $502M | – | – |
| Income (loss) from continuing operations, three months ended September 26, 2026GAAP | $10M | – | – |
| Operating margin, three months ended September 26, 2026GAAP | 1.2% | – | – |
| Income from continuing operations, as adjusted, three months ended September 26, 2026non-GAAP | $31M | – | – |
| Operating margin, as adjusted, three months ended September 26, 2026non-GAAP | 3.8% | – | – |
| Net income (loss) from continuing operations, three months ended September 26, 2026GAAP | $27M | – | – |
| Net income (loss), three months ended September 26, 2026GAAP | $27M | – | – |
| Diluted net income (loss) per ordinary share from continuing operations, three months ended September 26, 2026GAAP | $0.25 | – | – |
| Diluted earnings per ordinary share, three months ended September 26, 2026GAAP | $0.25 | – | – |
| Net income (loss) attributable to Capri from continuing operations, as adjusted, three months ended September 26, 2026non-GAAP | $45M | – | – |
| Diluted net income (loss) per ordinary share from continuing operations, as adjusted, three months ended September 26, 2026non-GAAP | $0.42 | – | – |
| Total revenue, six months ended September 26, 2026GAAP | $1.58B | – | (4.5)% |
| Gross profit, six months ended September 26, 2026GAAP | $1.01B | – | – |
| Income from continuing operations, six months ended September 26, 2026GAAP | $27M | – | – |
| Operating margin, six months ended September 26, 2026GAAP | 1.7% | – | – |
| Income from continuing operations, as adjusted, six months ended September 26, 2026non-GAAP | $59M | – | – |
| Operating margin, as adjusted, six months ended September 26, 2026non-GAAP | 3.7% | – | – |
| Net income (loss) attributable to Capri from continuing operations, as adjusted, six months ended September 26, 2026non-GAAP | $121M | – | – |
| Diluted net income (loss) per ordinary share from continuing operations, as adjusted, six months ended September 26, 2026non-GAAP | $1.09 | – | – |
| Cash flow provided by operating activities, second quarterGAAP | $51M | – | – |
| Capital expenditures, second quarterother | $15M | – | – |
| Free cash flow, second quarternon-GAAP | $36M | – | – |
| Net inventory as of September 26, 2026GAAP | $712M | – | 7% decrease |
| Cash and cash equivalents as of September 26, 2026GAAP | $125M | – | – |
| Total borrowings outstanding as of September 26, 2026GAAP | $461M | – | – |
| Net debt as of September 26, 2026other | $336M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Michael KorsApproximately $15 million of revenue was attributable to earlier than anticipated timing of wholesale shipments. Gross margin increased 220 basis points, primarily driven by higher full-price sell-throughs and lower tariff rates relative to the second quarter of fiscal 2026. | $663M | – | decreased 8.6% |
| Jimmy ChooApproximately $5 million of revenue was attributable to earlier than anticipated timing of wholesale shipments. Gross margin increased 100 basis points, primarily driven by higher full-price sell-throughs. | $146M | – | increased 11.5% |
| Michael Kors, six months ended September 26, 2026Constant-currency revenue change was (7.8)%. | $1.25B | – | (7.9)% |
| Jimmy Choo, six months ended September 26, 2026Constant-currency revenue change was 10.6%. | $325M | – | 10.9% |
Fiscal Year 2027 and Third Quarter Fiscal 2027, adjusted, non-GAAP basis outlook
- RevenueFiscal Year 2027 Capri Holdings total revenue of approximately $3.42 billion; Third Quarter Fiscal 2027 Capri Holdings total revenue of approximately $1.005 billion
- Tax rateFiscal Year 2027 effective tax rate in the low-teens percent range; Third Quarter Fiscal 2027 effective tax rate in the mid-teens percent range
- NoteFiscal Year 2027 operating income of approximately $175 million
- NoteFiscal Year 2027 net interest and other income of approximately $100 million
- NoteFiscal Year 2027 weighted average diluted shares outstanding of approximately 108 million
- NoteFiscal Year 2027 diluted earnings per share of approximately $2.20
- NoteFiscal Year 2027 Michael Kors total revenue of approximately $2.77 billion and operating margin in the low-double-digit percent range
- NoteFiscal Year 2027 Jimmy Choo total revenue of approximately $650 million and operating margin in the low-single-digit percent range
- NoteThird Quarter Fiscal 2027 operating income of approximately $90 million
- NoteThird Quarter Fiscal 2027 net interest and other income of approximately $25 million
- NoteThird Quarter Fiscal 2027 weighted average diluted shares outstanding of approximately 103 million
- NoteThird Quarter Fiscal 2027 diluted earnings per share of approximately $0.95
- NoteThird Quarter Fiscal 2027 Michael Kors total revenue of approximately $830 million and operating margin in the mid-teens percent range
- NoteThird Quarter Fiscal 2027 Jimmy Choo total revenue of approximately $175 million and operating margin in the low-to-mid-single-digit percent range
- NoteGuidance assumes an incremental 10% tariff rate on imports into the United States through July 24, 2026 and 10% to 12.5% thereafter.
- NoteThird Quarter Fiscal 2027 Capri Holdings outlook includes the impact of $20 million of wholesale shipments that shifted out of the third quarter into the second quarter.
- NoteThird Quarter Fiscal 2027 Michael Kors outlook reflects the impact of $15 million of wholesale shipments that shifted out of the third quarter into the second quarter.
- NoteThird Quarter Fiscal 2027 Jimmy Choo outlook reflects the impact of $5 million of wholesale shipments that shifted out of the third quarter into the second quarter.
Capital returns
- During the fiscal second quarter, the Company spent $150 million to repurchase approximately 10.3 million ordinary shares in open market transactions at an average cost of approximately $14.56 per share.
- As of September 26, 2026, remaining availability under the share repurchase program was $721 million.
What drove it
- Total revenue included approximately $20 million attributable to earlier than anticipated timing of wholesale shipments.
- The 230 basis point increase in total gross margin was primarily driven by higher full-price sell-throughs, brand mix and lower tariff rates relative to the second quarter of fiscal 2026.
- Michael Kors operating-margin expansion was primarily due to higher gross margin, partially offset by expense deleverage on lower revenue.
- Jimmy Choo operating-margin expansion was primarily driven by expense leverage on higher revenue.
- The company said trends improved sequentially each month across both luxury houses during the second quarter.
Concerns
- Total revenue decreased 5.5% on a reported basis and 4.9% in constant currency.
- Michael Kors revenue decreased 8.6% on a reported basis and 8.0% in constant currency.
- The company cited possible changes in global macroeconomic conditions, incremental tariff rates in excess of its assumptions, greater than anticipated inflationary pressures or weakening consumer confidence, and further considerable fluctuations in foreign currency exchange rates as factors that could cause results to differ materially from outlook.
- Third-quarter outlook reflects wholesale shipments that shifted out of the third quarter into the second quarter.
What to watch
- Whether total company revenue returns to growth in the second half of fiscal 2027, as management expects.
- Michael Kors revenue trajectory and its expected fiscal-year operating margin in the low-double-digit percent range.
- Jimmy Choo's ability to sustain revenue growth and achieve a fiscal-year operating margin in the low-single-digit percent range.
- Performance against third-quarter total revenue outlook of approximately $1.005 billion and diluted earnings per share outlook of approximately $0.95.
- The effect of tariff assumptions, which include an incremental 10% tariff rate on imports into the United States through July 24, 2026 and 10% to 12.5% thereafter.
Balance sheet and cash flow
- Cash flow provided by operating activities for the second quarter was $51 million.
- Capital expenditures were $15 million, resulting in free cash flow of $36 million.
- Cash and cash equivalents totaled $125 million as of September 26, 2026.
- Total borrowings outstanding were $461 million, resulting in net debt of $336 million as of September 26, 2026 versus $1.6 billion as of September 27, 2025.
- Net inventory as of September 26, 2026 was $712 million, a 7% decrease compared to the prior year.
- Total number of retail stores was 860 as of September 26, 2026, compared to 907 as of September 27, 2025.
Analysis
Capri reported second-quarter total revenue of $809 million, down 5.5% reported and down 4.9% in constant currency from $856 million. The sales result included approximately $20 million attributable to earlier than anticipated wholesale shipments. Michael Kors revenue decreased 8.6% to $663 million, whereas Jimmy Choo revenue increased 11.5% to $146 million. For the six-month period, total revenue was $1,578 million versus $1,653 million, with Michael Kors at $1,253 million and Jimmy Choo at $325 million.
Profitability improved materially despite the revenue decline. Gross profit was $512 million versus $522 million, while gross margin rose 230 basis points to 63.3%, primarily due to higher full-price sell-throughs, brand mix and lower tariff rates relative to the second quarter of fiscal 2026. Continuing-operations income was $10 million compared with a $12 million loss, and adjusted continuing-operations income was $31 million compared with $20 million. Operating margin was 1.2%, with adjusted operating margin at 3.8% versus 2.3%.
Michael Kors generated operating income of $68 million and a 10.3% operating margin, compared with $73 million and 10.1%. Its margin improvement reflected higher gross margin, partly offset by expense deleverage on lower revenue. Jimmy Choo generated operating income of $2 million and a 1.4% operating margin, compared with a $9 million operating loss and a (6.9)% margin. Its improvement was attributed to expense leverage on higher revenue. Total reported gross-margin expansion therefore coincided with a divergent top-line profile across the two brands.
Liquidity and capital allocation were active. Operating cash flow was $51 million, capital expenditures were $15 million and free cash flow was $36 million. Cash and cash equivalents were $125 million, total borrowings were $461 million and net debt was $336 million, compared with $1.6 billion as of September 27, 2025. The company repurchased approximately 10.3 million ordinary shares for $150 million at an average cost of approximately $14.56 per share, leaving $721 million of repurchase authorization.
Management increased its fiscal-year outlook to approximately $3.42 billion of revenue, approximately $175 million of operating income and approximately $2.20 of diluted earnings per share, all on an adjusted, non-GAAP basis. Third-quarter guidance calls for approximately $1.005 billion of revenue, approximately $90 million of operating income and approximately $0.95 of diluted earnings per share. The third-quarter revenue outlook incorporates wholesale shipments that shifted into the second quarter, including $15 million for Michael Kors and $5 million for Jimmy Choo. The outlook also assumes an incremental 10% tariff rate on imports into the United States through July 24, 2026 and 10% to 12.5% thereafter.
Management, verbatim
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. We are pleased with the progress we are seeing and believe these initiatives are beginning to position our brands for sustainable growth.
John D. Idol, Chairman and Chief Executive Officer
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. As these efforts continue to gain traction, we remain confident in our ability to deliver sustainable growth and create meaningful value for shareholders over time.
John D. Idol, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Prior-quarter comparisons for reported financial metrics were not provided.
- A dividend amount or dividend declaration was not reported.
- GAAP reconciliations for the non-GAAP financial outlook were not provided because the company stated that doing so would require unreasonable effort.
- Separate prior-year comparative amounts were not reported for second-quarter operating cash flow, capital expenditures, free cash flow, total borrowings outstanding or share repurchases.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Capri Holdings furnished its Q2 FY2027 results on Form 8-K, with continuing operations and brand-level performance for Michael Kors and Jimmy Choo.
Ticker impact
Capri Holdings reported Q2 FY2027 results and provided FY2027 outlook, including revenue, operating income, and EPS guidance on an adjusted basis.
Likely upward bias as investors price in improved luxury momentum and higher full-year operating outlook, tempered by tariff/FX uncertainty.
The filing includes Q2 operating margin improvement (adjusted operating margin 3.8% vs 2.3%) and full-year adjusted outlook figures, which are direct inputs to valuation and expectations.
Market effects
Provides a read-through for US-listed luxury apparel demand and pricing power, especially for Michael Kors and Jimmy Choo brand momentum.
Limited direct regional spillover beyond US luxury sentiment; could influence broader discretionary spending expectations.
Tariff-rate and FX assumptions make the outlook relevant to global trade and currency-sensitive luxury supply chains.
Counterpoint
Despite adjusted margin improvement, reported revenue declined and the outlook still depends on tariff assumptions, so the market may discount the durability of the recovery.
Key entities
- companyCapri Holdings Limited
US-listed luxury fashion group reporting Q2 FY2027 results and FY2027 outlook.
- companyPrada S.p.A.
Counterparty to the previously disclosed stock purchase agreement for Capri’s Versace business, now reflected as discontinued operations.
