Capri Holdings Limited delivered a mixed but better than expected third quarter, with revenue down but earnings and cash generation ahead of guidance as the group pivots to a leaner, Michael Kors, and Jimmy Choo only portfolio. The company also used proceeds from the sale of Versace to slash net debt to just $80 million, sharply improving its balance sheet heading into fiscal 2027.
Headline Q3 Fiscal 2026 Numbers
In the quarter ended December 27, 2025, total revenue from continuing operations fell 4.0 percent year over year to $1.025 billion, or 5.9% lower on a constant currency basis. Gross profit came in at $623 million with a gross margin of 60.8%, versus 63.1% a year earlier, as underlying margin expansion was offset by higher than expected tariffs.
Operating income rose to $46 million, lifting the operating margin to 4.5% from 2.4% last year, while adjusted operating income reached $79 million…
for a 7.7% adjusted margin. Net income from continuing operations jumped to $57 million, or $0.47 per diluted share, with adjusted EPS at $0.81 versus $0.63 in the prior year period.
Brand Performance: Michael Kors Soft, Jimmy Choo Returns To Profit Michael Kors generated quarterly revenue of $858 million, down 5.6% on a reported basis and 7.3% in constant currency.
The brand’s gross profit was $512 million with a 59.7% gross margin, and operating income of $119 million translated into a still healthy 13.9% operating margin, albeit lower than last year’s 16.2%. Jimmy Choo was the bright spot, with revenue up 5.0% to $167 million (up 1.9% in constant currency).
Gross profit improved to $111 million at a 66.5% margin, and the brand swung to an operating profit of $3 million and a 1.8% operating margin, compared with a $6 million operating loss and (3.8%) percent margin a year earlier…
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