Inside Capri Holdings: Jimmy Choo Rises as Michael Kors Steadies

the drivers. More telling: the brand flipped from a $6 million operating loss a year ago to a $3 million operating profit — a swing that signals strategic traction, not just a good quarter. Gross margin also expanded, coming in at 66.5% versus 66% in the prior year.

The brand has been quietly repositioning around elevated accessories and a tighter product story. It is a smaller business than Michael Kors, but it is moving in the right direction and closing in on sustainable profitability.

Michael Kors: Revenue Pressure, Margin Hold Michael Kors remains the group’s engine, generating $858 million in quarterly revenue, but that figure fell 5.6% year-over-year (7.3% in constant currency). Operating margin compressed to 13.9% from 16.2% a year earlier.

The brand has been navigating a correction after years of over-distribution eroded its positioning — a familiar story for accessible luxury names that scaled too fast. Management is now targeting fiscal 2027 for a return to growth. The language from CEO John Idol suggests confidence in the direction, if not the timeline…