Capri Raises Fiscal 2027 Outlook After Jimmy Choo Profit Turn

The Tip Desk · October 30, 2026 · 3 min read

The luxury group reported second-quarter fiscal 2027 revenue of $809 million, down 5.5%, and now expects full-year revenue of about $3.42 billion and adjusted diluted earnings of $2.20 a share, after Jimmy Choo swung to a $2 million operating profit.

Capri Holdings Limited (CPRI) reported second-quarter fiscal 2027 revenue of $809 million, down 5.5% year over year, and raised its full-year fiscal 2027 outlook to total revenue of approximately $3.42 billion and adjusted diluted earnings of about $2.20 a share, from the prior-quarter guide of about $3.4 billion of revenue and adjusted diluted earnings of $2.15 a share, after Jimmy Choo returned to an operating profit.

The global fashion luxury group, which now consists of Michael Kors and Jimmy Choo after completing the sale of Versace to Prada on December 2, 2025, reported second-quarter fiscal 2027 revenue of $809 million, a 5.5% decline from a year earlier and 4.9% in constant currency. That year-over-year drop was steeper than the 3.5% reported decline in the first quarter.

Income from operations was $10 million versus an operating loss of $12 million a year earlier. Net income from continuing operations was $27 million, or $0.25 per diluted share, versus a $34 million loss, or $(0.28) per diluted share, a year earlier. Adjusted earnings were $0.42 a share. Operating margin was 1.2%; adjusted operating margin was 3.8%.

Chairman and Chief Executive Officer John D. Idol said the company is encouraged by momentum at both houses and that trends improved sequentially each month in the second quarter, reflecting actions to sharpen assortments, elevate brand desirability and strengthen consumer engagement. He said the company continues to expect total company revenue to return to growth in the second half of fiscal 2027.

Michael Kors, the larger of the two brands, generated $663 million of revenue, down 8.6% as reported and 8.0% in constant currency. Operating income was $68 million and operating margin was 10.3%. Gross margin was 61.5%. The company said about $15 million of Michael Kors revenue was attributable to earlier-than-anticipated timing of wholesale shipments.

Jimmy Choo revenue was $146 million, up 11.5% as reported and 12.2% in constant currency. Operating income was $2 million, or a 1.4% margin, versus an operating loss of $9 million and a (6.9)% margin a year earlier. Gross margin was 71.2%. About $5 million of Jimmy Choo revenue was also tied to earlier wholesale shipments.

Gross profit for the combined company was $512 million and gross margin was 63.3%, compared with $522 million and 61.0% a year earlier. The company said the 230 basis point increase was primarily driven by higher full-price sell-throughs, brand mix and lower tariff rates relative to the second quarter of fiscal 2026.

Net inventory was $712 million as of September 26, 2026, a 7% decrease from the year-earlier quarter. Cash flow from operations was $51 million; capital expenditures were $15 million, for free cash flow of $36 million. Cash and cash equivalents were $125 million and total borrowings were $461 million, leaving net debt of $336 million versus $1.6 billion a year earlier.

The company spent $150 million in the quarter to repurchase about 10.3 million ordinary shares at an average cost of about $14.56 a share. Remaining authorization was $721 million.

For the third quarter of fiscal 2027, Capri expects total revenue of approximately $1.005 billion and adjusted diluted earnings of about $0.95 a share, including $20 million of wholesale shipments that shifted out of the third quarter into the second. Michael Kors is expected at about $830 million of revenue with a mid-teens operating margin; Jimmy Choo at about $175 million with a low-to-mid-single-digit operating margin.

Full-year guidance continues to assume an incremental 10% tariff rate on U.S. imports through July 24, 2026 and 10% to 12.5% thereafter. The company said it expects Michael Kors full-year revenue of about $2.77 billion with a low-double-digit operating margin, and Jimmy Choo revenue of about $650 million with a low-single-digit operating margin.