Capri Holdings is a two-brand group now, and the split is telling. Jimmy Choo is quietly becoming the company’s most compelling story, posting 5% revenue growth and flipping from a loss to a $3 million operating profit in Q3 FY2026. Michael Kors, still the group’s biggest earner at $858 million in quarterly revenue, continues to lose ground, down 5.6% year-on-year as it works through a prolonged correction from years of over-distribution.
It signals a divergence: one brand gaining momentum, one resetting, and a balance sheet that just got a lot cleaner after the $1.375 billion Versace sale to Prada.
| Brand | Q3 Revenue | YoY Change | Operating Margin |
| Michael Kors | $858M | -5.6% | 13.9% |
| Jimmy Choo | $167M | +5.0% | 1.8% |
| Total (Group) | $1.025B | -4.0% | 4.5% reported / 7.7% adj. |
Jimmy Choo: The Bright Spot
Jimmy Choo delivered 5% revenue growth on a reported basis, reaching $167 million. Core accessories and improving retail momentum were 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. Inventory is already leaner, down 6.5% versus a year ago — a positive signal for margin recovery.
The Versace Effect: A Cleaner Balance Sheet
The quarter’s most significant number may not be on the income statement. Following the $1.375 billion sale of Versace to Prada, completed December 2, 2025, Capri’s net debt collapsed from roughly $1.6 billion to $80 million.
That financial breathing room allows both remaining brands to invest without the pressure of servicing a heavy debt load and gives management the flexibility to be deliberate rather than reactive as Michael Kors finds its footing.
