Capri Holdings (CPRI) Q3 2026 earnings summary

Executive summary

• Revenue and EPS for the quarter exceeded expectations, despite a 4.0% year-over-year revenue decline on a reported basis and 5.9% in constant currency, with Michael Kors declining and Jimmy Choo growing modestly.

• Adjusted EPS rose 30% to $0.81, and the consumer database grew 8% year-over-year.

• Net debt was reduced to $80 million at quarter end, following the completed sale of Versace.

• Net income from continuing operations was $57 million, a significant increase from $6 million in the prior year quarter.

• Strategic focus remains on Michael Kors and Jimmy Choo, with expectations for a return to growth in fiscal 2027.

Financial highlights

• Total revenue was $1.025 billion, down 4% year-over-year; gross margin was 60.8%.

• Adjusted operating margin was 7.7%; reported operating margin was 4.5%.

• Adjusted EPS was $0.81, up from $0.63 year-over-year.

• Inventory down 6.5% year-over-year to $663 million.

• Net income attributable to Capri was $116 million, compared to a net loss of $547 million in the prior year, driven by improved operating results and the gain on the Versace sale.

Outlook and guidance

• Fiscal 2026 revenue expected at $3.45–$3.475 billion; Michael Kors $2.86–$2.875 billion, Jimmy Choo $590–$600 million.

• Gross margin anticipated at ~61%; operating income around $100 million.

• Diluted EPS forecasted at $1.30–$1.40; capital expenditures expected to be $100 million.

• Return to revenue and earnings growth expected in fiscal 2027, with gross margin expansion driven by full price sell-throughs, sourcing efficiencies, and price increases.

• Guidance excludes potential impacts from macroeconomic volatility, tariffs, inflation, and currency fluctuations.