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Sep 27
Capri Q2 2026 Earnings Report
Capri Holdings Limited announced its financial results for the second quarter of Fiscal 2026, with revenue decreasing 2.5% and an adjusted operating margin of 2.3%. The company reported a net loss and adjusted net loss per share, reflecting a higher than anticipated tax rate.
Key Takeaways
Capri Holdings reported a challenging second quarter for fiscal 2026, with total revenue declining by 2.5% to $856 million. Despite the revenue decrease, the company's gross margin and operating income exceeded expectations, driven by sequential improvements. The net loss was $34 million, or $(0.28) per diluted share, with an adjusted net loss of $4 million, or $(0.03) per diluted share, impacted by a higher tax rate. The company is focusing on Michael Kors and Jimmy Choo following the expected Versace sale and has authorized a new $1 billion share repurchase program.
Total revenue for Q2 FY26 decreased by 2.5% to $856 million, or 4.2% on a constant currency basis.
The company reported a GAAP net loss of $34 million, or $(0.28) per diluted share, and an adjusted net loss of $4 million, or $(0.03) per diluted share.
Gross margin was 61.0%, and adjusted operating margin was 2.3%, both exceeding expectations.
Capri Holdings authorized a new $1 billion share repurchase program, expected to commence in fiscal 2027, following the anticipated Versace sale and debt reduction.
Capri
Capri
Capri Revenue by Segment
Capri Revenue by Geographic Location
Revenue by Segment
Michael Kors Revenue
CapyFin.comJimmy Choo Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Revenue
CapyFin.com Forward Guidance
Capri Holdings expects retail trends to improve in the second half of fiscal 2026, leading to a return to growth in fiscal 2027. The company provided guidance for fiscal year 2026 and the third quarter of fiscal 2026, focusing on revenue, operating income, and EPS for the overall company and its Michael Kors and Jimmy Choo brands.
Positive Outlook
- Expected return to growth in fiscal 2027.
- Anticipated improvement in retail trends in the back half of fiscal 2026.
- Planned use of Versace sale proceeds to repay the majority of debt, strengthening the balance sheet.
- Authorization of a new $1 billion share repurchase program, expected to begin in fiscal 2027.
- Optimism about the sustainable growth potential of Michael Kors and Jimmy Choo.
Challenges Ahead
- Fiscal Year 2026 total revenue guidance of $3.375 billion to $3.45 billion, indicating continued challenges.
- Fiscal Year 2026 operating income guidance of approximately $100 million, suggesting ongoing pressure on profitability.
- Fiscal Year 2026 diluted EPS guidance of $1.20 to $1.40, reflecting a cautious outlook.
- Jimmy Choo's fiscal year 2026 operating margin expected to be in the negative mid-single-digit range.
- Guidance reflects incremental tariffs, which could negatively impact financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income