Key Highlights

  • Revenue was USD 809 million, down 5.5%, while Operating Income increased 55% on stronger margins and cost control.
  • Earnings per share were USD 0.42 compared with a loss of USD 0.03 a year earlier, ahead of expectations.
  • Michael Kors Revenue fell 8.6% to USD 663 million, while Jimmy Choo revenue rose 11.5%, ahead of expectations.
  • Management raised fiscal 2027 revenue and EPS guidance and anticipates revenue returning to growth in the second half.

Profit Rebounds as Revenue Slips

Capri Holdings Limited (NYSE:CPRI) reported fiscal second-quarter 2027 revenue of USD 809 million, down 5.5% from a year earlier, while operating income increased 55%. Earnings Per Share were USD 0.42 versus a loss of USD 0.03. On a GAAP basis, Diluted Earnings per Share from continuing operations were USD 0.25 versus a loss of USD 0.28, with diluted shares of 110.4 million versus 119.8 million.

Management said trends improved sequentially each month and revenue, operating income and EPS were above expectations. Revenue declined 4.9% in constant currency, and Michael Kors revenue of USD 663 million fell 8.6% reported and 8% in constant currency.

Brand Performance

Michael Kors revenue decreased 8.6%, ahead of expectations, with about USD 50 million affected by inventory delays that constrained availability. Own retail sales declined low double digits as the company held about 40% less markdown inventory and cut promotional activity by about 50%, which supported higher full-price sell-through, average unit retail growth and gross Margin expansion. Wholesale revenue declined mid-single digits, helped by a timing shift from the third quarter, and point-of-sale trends with wholesale partners remained positive. About USD 15 million of wholesale shipments arrived earlier than planned. By geography, Michael Kors revenue fell 11% in the Americas, 5% in EMEA on Middle East conflict effects and inventory delays, and 1% in Asia on inventory constraints.

Jimmy Choo revenue rose 11.5%, driven by footwear and accessories, with own retail up mid-single digits and the Americas up double digits.

Guidance and Targets

Fall assortments arrived later in the quarter and drew a positive consumer response, which improved sales sequentially each month, and new handbag silhouettes included the Hamilton Soft. Chief executive John Idol said progress at both luxury houses supports increased fiscal 2027 revenue and EPS guidance. The company continues to anticipate total revenue returning to growth in the second half, supported by new product, higher Marketing and improved consumer experience. Management said it expects the full-price channel at Michael Kors to return to growth in the second half and outlet trends to keep improving. Michael Kors revenue trends are projected to improve sequentially in the third quarter and return to growth in the fourth, driven by new product, holiday gift assortments, higher marketing, store renovations and a moderating quality-of-sale impact.

Long-term Brand targets include USD 4 billion of Michael Kors revenue with operating margins in the low 20% range and USD 800 million of Jimmy Choo revenue with margins in the low double digits.

Second-Half Checkpoints

Nine-month GAAP diluted EPS from continuing operations was USD 0.85 versus USD 0.19, and nine-month diluted weighted average shares were 113.2 million versus 119.7 million. Items to watch include inventory availability at Michael Kors, the pace of fall assortment sell-through, wholesale timing and consumer response to new handbag silhouettes.