Capri Holdings, which owns luxury brands such as Versace, Michael Kors and Jimmy Choo, reported a 6% decline in total revenue on a reported basis to $797m in the first quarter (Q1) of fiscal 2026 (FY26) and a 7.7% drop on constant currency year-on-year (YoY).
The company states that this signifies a “sequential improvement” when compared to the YoY performance in Q4.
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The group’s financial results have been adjusted to exclude Versace, now reclassified as a discontinued operation.
The company’s reported outcomes focus on continuing operations, and “financial statements have been adjusted for prior periods to exclude Versace”.
Capri signed an agreement with Prada to sell its Versace business for $1.38bn cash in April 2025.
The company expects the transaction for the sale of Versace to complete in the second half of 2025.
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By GlobalDataGross profit for Capri was posted at $502m with a gross margin of 63%. Net income attributable to Capri stood at $53m, with diluted earnings per share amounting to $0.47.
The company’s performance surpassed expectations due to stronger-than-anticipated outcomes from both Michael Kors and Jimmy Choo, as the impact of strategic initiatives began to materialise.
The reported results also include a discrete tax benefit.
Michael Kors saw a 5.9% revenue decline to $635m over the quarter, with an operating income of $63m.
Jimmy Choo also posted a revenue decrease of 6.4% to $162m, maintaining an operating income of $4m.
Capri chairman and CEO John Idol stated: “We are encouraged by our first quarter results. Trends improved sequentially leading to both revenue and earnings per share that exceeded our expectations.”
In FY26, the company is expecting total revenue to be between $3.375bn and $3.45bn, and an operating income of around $100m.
During the earnings call, interim chief financial officer Raj Mehta said: “We are raising prior revenue guidance to reflect the recent weakening of the US dollar as well as our outperformance in the first quarter.”
He added: “While we are encouraged by our first quarter results and the early signs that our strategic initiatives are working, the global macroeconomic environment remains dynamic.
“Our updated guidance reflects incremental tariff rates on imports from China at 30%, India at 25%, the rest of Asia at 19% to 20% and the European Union at 15%. As a result, we now estimate unmitigated impact of tariffs on products shipped into the United States will increase our cost of goods sold by approximately $85m in fiscal 2026, up from our prior estimate of approximately $60m.”
For the second quarter FY26, the company forecasts total revenue between $815m and $835m, with a slightly positive operating margin.
