Capri Holdings Limited Announces Third Quarter Fiscal 2026 Results

Capri Holdings Limited, a global fashion luxury group, has released its financial results for the third quarter of Fiscal 2026, which ended on December 27, 2025. The company reported results that exceeded expectations, despite a slight decrease in revenue compared to the previous year.

Financial Highlights

For the third quarter of Fiscal 2026, Capri Holdings reported:

• Total revenue of $1.025 billion, a decrease of 4.0% compared to the previous year.
• Gross profit of $623 million, with a gross margin of 60.8%.
• Operating income of $46 million, with an operating margin of 4.5%.
• Net income of $57 million, or $0.47 per diluted share. Adjusted net income was $98 million, or $0.81 per diluted share.
• Net debt reduced to $80 million at the end of the quarter, down from $1.17 billion the previous year.

Business and Operational Highlights

Michael Kors, one of Capri Holdings' iconic brands, reported revenue of $858 million, a decrease of 5.6% on a reported basis. The brand's gross profit was $512 million, with a gross margin of 59.7%. Operating income for Michael Kors was $119 million, with an operating margin of 13.9%.

Jimmy Choo, another key brand, saw its revenue increase by 5.0% to $167 million. The brand's gross profit was $111 million, with a gross margin of 66.5%. Jimmy Choo reported an operating income of $3 million, compared to an operating loss of $6 million in the prior year.

Strategic Initiatives and Corporate Developments

Capri Holdings completed the sale of its Versace business, a strategic move aimed at strengthening its financial foundation. The proceeds from the sale were used to significantly reduce the company's debt levels. This decision is expected to provide Capri Holdings with the flexibility to support the strategic initiatives of Michael Kors and Jimmy Choo, enhancing long-term shareholder value.

Management's Perspective

John D. Idol, Chairman and CEO of Capri Holdings, expressed satisfaction with the company's third-quarter performance, which exceeded expectations. He highlighted the ongoing strategic initiatives for Michael Kors and Jimmy Choo, aimed at positioning these brands for long-term success. Idol also emphasized the importance of the Versace sale in strengthening the company's financial foundation.

Future Outlook

For the full fiscal year 2026, Capri Holdings provided the following guidance:

• Total revenue of approximately $3.45 to $3.475 billion.
• Operating income of approximately $100 million.
• Net interest income of approximately $85 to $90 million.
• Effective tax rate in the low- to mid-teens range.
• Diluted earnings per share of approximately $1.30 to $1.40.
• Capital expenditures of approximately $100 million.

For Michael Kors, the company expects total revenue of approximately $2.86 to $2.875 billion, with an operating margin in the high-single-digit range. For Jimmy Choo, total revenue is expected to be approximately $590 to $600 million, with an operating margin in the negative low-single-digit range.

Original SEC Filing: Capri Holdings Ltd [ CPRI ] - 8-K - Feb. 03, 2026