Capri Holdings reported third-quarter fiscal 2026 results that exceeded expectations despite a 4% decline in total revenue, bolstered by strong gross margin expansion and significant debt reduction following the sale of Versace.

• Total revenue reached $1.025 billion, a 4% decrease year-over-year, primarily impacted by strategic changes in promotional activities.
• Earnings per share increased by approximately 30% to 81¢, reflecting improved full-price sell-throughs.
• Michael Kors retail sales declined 5.6%, but full-price sales saw low double-digit growth, indicating a shift towards healthier sales mix strategies.
• The sale of Versace contributed to a reduction in net debt to $80 million, enhancing financial flexibility for sustained brand development.
• Enhanced consumer engagement initiatives led to an 8% increase in the Michael Kors global consumer database, highlighting successful marketing strategies.