Capri Holdings Limited Earnings Recaps
Q4 2026
May 29, 2026
Capri Holdings shares rose 6.7% as investors responded positively to notable margin expansion and a clear roadmap for operating income growth, supported by disciplined brand repositioning and share repurchases.
Key takeaways
- Fourth quarter revenue declined 4% to $796 million, in line with expectations, reflecting ongoing quality of sale initiatives that trimmed promotional and off-price activities.
- Gross margin expanded sharply by 490 basis points to 64.8%, helped by a $40 million tariff refund, underscoring improved profitability.
- Michael Kors revenue fell 5% year-over-year due to deliberate reductions in discounting and third-party sales; however, full-price sell-throughs, average unit retail (AUR), and consumer engagement improved.
- The company returned to profitability in Q4 with EPS of $0.22, significantly ahead of the prior year.
- Fiscal 2027 outlook targets low single-digit revenue growth, approximately 200 basis points of gross margin expansion, a modest increase in operating expenses, and a 60% increase in operating income, supported by $200 million in share repurchases.
Q3 2026
Feb 3, 2026
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.
Key takeaways
- 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.