Capri Holdings — the parent company of Michael Kors, Jimmy Choo and (for now) Versace — said revenues declined 4.2% on a constant currency basis to $856 million in the second quarter of 2026, ended 27 September 2025. This was slightly better than analyst expectations of a $815 million to $835 million ballpark.
“We are encouraged by the early signs of recovery at our fashion and luxury houses, and remain optimistic about the direction of the business,” chair and CEO John Idol said on Tuesday’s earnings call. “However, we recognize that it will take more time for the full effect to be reflected in our results. Despite the dynamic macroeconomic environment, we are on track to stabilize our business this year.”
Gross profit declined year-on-year from $547 million to $522 million, with gross margin declining from 62.3% to 61% due to tariffs. Operating loss increased to $12 million this quarter, up from $6 million in Q2 2025.
The company has maintained its full-year 2026 revenue outlook of between $3.38 billion and $3.45 billion, marking its third consecutive year of losses, and expects to return to growth in fiscal 2027. The board of directors has also authorized a three-year share repurchase program of up to $1 billion, which the company will begin implementing in fiscal 2027.
By region, sales in the Americas (which makes up 61% of group sales) declined 7%. Sales in Europe, the Middle East and Africa (26% of the group sales) were up 1%, while sales in Asia (12% of group sales) were up 12%.
By brand, Michael Kors revenues declined 3.3% year-on-year to $725 million. Retail sales in the full-price channel performed the best, driven by strong growth in accessories. As such, the outlet channel was negatively impacted by the strategy to improve quality of sales and to reduce promotional activity. Wholesale improved sequentially, but sales were still negative. Gross margin declined from 61.1% to 59.3% and operating income declined from $87 million to $73 million. Capri is working on improving Michael Kors’s desirability; its store renovation plan, which includes incorporating cafés, has already been rolled out at its New York flagship and will be extended to Paris, Beijing, Tokyo and Las Vegas.
Jimmy Choo revenues declined 9.3% year-on-year to $131 million. Gross margin improved from 68.6% to 70.2%, but operating losses widened from $5 million to $9 million. Likewise, the company plans to increase full-price sales at Jimmy Choo with the intention of raising average unit retail (AUR) to expand margins.
The company did not report on Versace’s financials. Idol confirmed that the sale of the Milanese house to Prada Group is expected to close in Q3, and that the company is now focused on Michael Kors and Jimmy Choo. “We plan to use the proceeds of the sale to repay the majority of our debt, substantially strengthening our balance sheet and providing greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future,” Idol said
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