Capri Holdings (CPRI) Citi’s 2026 Global Consumer & Retail Conference 2026 summary

Strategic initiatives and brand positioning

• Focused on modernizing Michael Kors and Jimmy Choo to appeal to Gen Z and millennials, leveraging heritage while updating marketing and product strategies.

• Enhanced use of influencers and increased marketing spend on social media channels, resulting in improved consumer engagement.

• Reset strategic pricing architecture and reduced discounting, especially for Michael Kors, leading to higher full-price sell-throughs.

• Significant reduction in debt following the sale of Versace, enabling a $1 billion share repurchase program and increased investment in core brands.

Brand performance and growth outlook

• Jimmy Choo achieved three consecutive quarters of comp store sales increases, driven by new marketing positioning and expansion into casual footwear and accessories.

• Accessories now represent a growing share of Jimmy Choo’s business, with new product lines performing strongly and double-digit growth in full-price handbags.

• Michael Kors is seeing positive consumer response to new marketing, product, and pricing strategies, with full-price sales and traffic up in renovated stores.

• Outlet channel for Michael Kors is being reset with new product and reduced promotional activity, expecting significant improvement by fall.

• Wholesale business is recovering, with partners seeking expanded assortments as accessible luxury outperforms top-tier luxury.

Financial targets and operational improvements

• Projecting low single-digit revenue growth and significant operating margin expansion (50–60% or more) next year, with SG&A expected to remain flat.

• Jimmy Choo targets 10–15% operating margins, driven by store productivity and accessories growth; Michael Kors aims for low-20s margin, supported by fleet optimization and gross margin expansion.

• Renovation of 350 stores over three years, with early results showing increased traffic and sales; new experiential elements like Jet Set Lounge and flagship restaurant in Beijing.

• Tariff headwinds expected to subside by Q4 next year, with price increases and supplier mitigation offsetting impacts; fuel surcharges anticipated as a new cost pressure.