Capri Holdings, the parent company of Jimmy Choo and Michael Kors, posted first-quarter fiscal 2027 earnings ahead of expectations despite a year-on-year (YoY) sales decline while trimming its full-year outlook.
For the three months to 27 June 2026, the group recorded revenue of $769m, a drop of 3.5% on a reported basis and 4.1% at constant currency.
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The results topped the guidance Capri had issued for the quarter alongside its fourth-quarter fiscal 2026 results, when the company had forecast total revenue of approximately $750m and operating income of approximately $10m.
Income from operations rose to $17m from $16m, lifting the operating margin to 2.2% from 2% in the same period last year.
Net income climbed to $69m, equivalent to $0.60 per diluted share, up from $56m, or $0.47 per diluted share, in the year-ago quarter.
As previously disclosed, the company and Prada entered a stock purchase agreement in April 2025 under which the latter agreed to acquire certain Capri subsidiaries operating its Versace business.
Capri classified the Versace business as discontinued operations in its consolidated financial statements for all periods presented, with related assets and liabilities classified as held for sale as of 28 June 2025.
The company completed the sale of its Versace business on 2 December 2025. Unless otherwise noted, the results discussed relate only to continuing operations.
Among its remaining brands, Michael Kors revenue slipped 7.1% to $590m, or 7.6% at constant currency, partly cushioned by roughly $10m in wholesale shipments that arrived earlier than planned.
By contrast, Jimmy Choo grew revenue by 10.5% to $179m, or 9.3% at constant currency.
Looking ahead, Capri now projects full-year revenue of around $3.4bn, citing a approximately $50m hit from delayed Michael Kors inventory affecting second-quarter sales, a further $50m drag from weaker EMEA [Europe, Middle East, and Africa] demand tied to the Middle East conflict, and $35m in currency-related headwinds.
Operating income for the year is forecast at approximately $170m, alongside net interest and other income of $100m, a low-teens effective tax rate, 110 million weighted average diluted shares, and diluted earnings per share near $2.15.
For the second quarter, the company expects revenue of $780m and operating income of roughly $10m, with results weighed down by inventory delays, softer EMEA trends, currency effects and the earlier shipment timing that had boosted the first quarter.
The guidance factors in a 10% US tariff rate through 24 July 2026, rising to 10%-12.5% afterwards, with the company cautioning that macroeconomic shifts, tariff changes or currency volatility could alter outcomes.
Capri chairman and CEO John D Idol said: “As we look at the balance of fiscal 2027 we expect Jimmy Choo to continue to grow and return to profitability. At Michael Kors certain headwinds, including lower-than-anticipated inventory levels in the second quarter, softer trends in EMEA and updated foreign currency exchange rate assumptions are impacting our revenue outlook.”
