Capri Holdings reports revenue decline for first quarter fiscal 2027

US-based fashion group Capri Holdings Limited (Capri) has announced its financial results for the first quarter of fiscal 2027 ended June 27, 2026. The company reported a total revenue of 769 million dollars from continuing operations, representing a 3.5 percent decrease on a reported basis and a 4.1 percent decline in constant currency compared to the prior-year period.

The group recorded net income of 69 million dollars, or 0.60 dollars per diluted share, up from 56 million dollars, or 0.47 dollars per diluted share, in the previous year. On an adjusted basis, net income reached 76 million dollars, or 0.67 dollars per diluted share.

Capri chairman and chief executive officer John D. Idol stated: “We are encouraged by our first quarter results, which exceeded our expectations and demonstrated the progress we are making to build a stronger and more profitable business. Our strategic initiatives across both Michael Kors and Jimmy Choo are driving deeper consumer engagement through enhanced brand storytelling and compelling product innovation.”

Performance across portfolio brands

Brand performance across the corporate portfolio diverged during the first quarter:

Michael Kors: Revenue fell 7.1 percent on a reported basis, or 7.6 percent in constant currency, to 590 million dollars. Approximately 10 million dollars in revenue was attributable to earlier-than-anticipated wholesale shipments. Gross profit stood at 377 million dollars, with a gross margin expansion of 280 basis points to 63.9 percent, while operating income declined to 55 million dollars.

Jimmy Choo: Revenue rose 10.5 percent on a reported basis, or 9.3 percent in constant currency, to 179 million dollars. Operating income expanded to 13 million dollars, delivering an operating margin of 7.3 percent, up 480 basis points YoY, supported by revenue scale. Gross margin eased 170 basis points to 68.7 percent due to channel mix.

Gross profit for the quarter stood at 500 million dollars, yielding a gross margin of 65 percent, up 200 basis points from 63 percent in the year-ago period. The margin improvement was primarily driven by higher full-price sell-throughs and lower tariff rates relative to the first quarter of fiscal 2026.

Financial results reflect continuing operations following the disposition of Italian luxury label Versace. On April 10, 2025, Capri entered into an agreement with Italian fashion group Prada to sell its Versace business, with the transaction officially completed on December 2, 2025.

Capri updates guidance

Capri continued to optimize its balance sheet during the quarter. During the first quarter, the conglomerate deployed 50 million dollars to repurchase approximately 2.6 million ordinary shares. As of June 27, 2026, remaining availability under the existing share repurchase program stood at 871 million dollars.

For the full fiscal year 2027, Capri adjusted its top-line outlook while maintaining its profit targets:

Total revenue is now expected to reach approximately 3.4 billion dollars, adjusted downward due to inventory delays at Michael Kors, softer trends across Europe, the Middle East and Africa, hereafter referred to as EMEA, and currency fluctuations.

Full-year diluted earnings per share, which will henceforth be referred to as diluted EPS, is maintained at approximately 2.15 dollars.

Operating income for the full year is projected at approximately 170 million dollars.

Full-year brand revenue is expected to reach approximately 2.765 billion dollars for Michael Kors and 635 million dollars for Jimmy Choo.

For the second quarter of fiscal 2027, Capri expects total group revenue of approximately 780 million dollars, operating income of approximately 10 million dollars, and diluted EPS of approximately 0.20 dollars.