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Capri Holdings, owner of Michael Kors and Jimmy Choo, sought to present an upbeat picture on Wednesday’s earnings call. Despite revenues down 14.1 per cent in constant currency to $1 billion for the group’s fourth quarter, CEO John Idol emphasised the “solid foundation” of Michael Kors and the brand’s potential to top $4 billion in sales.
Idol also highlighted “uncertainty around the impact of tariffs on the global economic environment”. By brand, Michael Kors was down 14.4 per cent to $694 million for the fourth quarter, ended 29 March; Jimmy Choo was down 1.5 per cent to $133 million; and Versace — sold to Prada Group in April — was down 19.7 per cent to $208 million. For fiscal 2026, Versace will be reclassified as a “discontinued operation”, CFO Thomas Edwards, who is leaving Capri Holdings on 20 June, said on the call. Idol added that he’s confident the Versace transaction will be completed sometime in the autumn.
“After careful evaluation, we concluded that the most effective way to maximise growth at Capri Holdings is to focus our resources on the compelling growth opportunities within our Michael Kors and Jimmy Choo brands,” Idol told investors. “With our new strategic initiatives in place, our strong balance sheet and focused senior leadership team, we are well positioned to accelerate the growth trajectory of both Michael Kors and Jimmy Choo.”
Fiscal 2025 was a challenging year, Idol acknowledged, noting that the company was “disappointed” with performance. “We were impacted by the continued softening demand for fashion luxury goods globally,” he said. “Our performance was further affected by store closures as well as ongoing reductions in the wholesale.”
By region, sales in the Americas declined by 13 per cent (Michael Kors down 12 per cent; Jimmy Choo down 7 per cent); EMEA (Europe, the Middle East and Africa) sales fell 14 per cent (Michael Kors down 15 per cent; Jimmy Choo up 9 per cent); while Asia was down heavily by 23 per cent (Michael Kors by 31 per cent; Jimmy Choo by 16 per cent).
The company is working to build the “great next chapter” for Michael Kors, Idol told investors, referencing a gradual improvement. He expects the brand to return to growth in 2027. “Michael Kors is a powerful fashion luxury brand that has a strong heritage, and we are eager to build on this solid foundation,” he said. “Guided by the insights gained from our data analytics and consumer feedback, we believe we have the right strategies underway to return the brand to growth over time.” Idol said Capri is confident in its ability to grow Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million.
The executive also addressed the question of tariff-related price increases. “We’re going to go slowly around that,” he said. “We want to first and foremost get the Michael Kors brand back on track, moving forward, re-engaging with that consumer so that they’re having a great experience with us. There’s not going to be any significant price changes.”
He added that tariff policies remain uncertain, making changes hard to quantify. “We need to determine where the tariffs are, because none of us actually know,” Idol said. “We’ve given you a range in our guidance, we’re all sitting here — as everyone is — waiting to find out what is happening. I think we’ll know more of that towards the tail end of the summer, so we can have a better understanding of what we are going to need to mitigate.”
Looking forward, for the first quarter of fiscal 2026, Capri expects revenues of approximately $765 to $780 million, down from $1.07 billion the year prior. For Michael Kors, it anticipates revenues of between $615 and $625 million; and for Jimmy Choo, it places revenues between $150 and $155 million. For the full year, Capri expects revenues of $3.3 to $3.4 billion — below analysts’ $4.1 billion expectation (and the figure Capri posted back in February).
“Entering fiscal 2026, we are optimistic about our path forward,” Idol said. “While the macro environment has become more challenging with uncertainty around tariffs, we remain focused on executing on our strategic initiatives that are designed to improve current sales trends and position the company for future growth across our luxury houses.”
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