Capri Holdings is Recovering Slowly in The First Quarter

The first quarter of fiscal 2026 (ended June 28) could have been much worse for Capri Holdings, owner of Michael Kors (which accounts for 68% of the group's capital) and Jimmy Choo. The group reported quarterly results that exceeded estimates in both earnings and revenue ($797 million). The stock, which has lost nearly 44% in a year, jumped about 9% before the market opened this morning.

The efforts have paid off for the group, which experienced difficulties last year. Its flagship brand Michael Kors declined only 5.9% in the quarter, compared with a 14.2% drop a year ago, and Jimmy Choo declined 6.3% with sales of $162 million. “Although it is still very early, we are beginning to see the first signs that our strategies are working,” said John D. Idol, the group's CEO.

The group is undergoing a strategic restructuring, notably with the upcoming sale of Versace to Italy's Prada for $1.25 billion (€1.12 billion). The takeover, which had also sparked numerous rumors about the possible sale of Jimmy Choo, was confirmed last April. After a failed attempt at a strategic merger with the American luxury group Tapestry, which was deemed unfair to competitors in the sector, the group had to quickly bounce back and rebuild.

"Looking ahead, with the Versace transaction expected to close in the second half of 2025, we are focused on executing strategic initiatives for our two iconic brands, Michael Kors and Jimmy Choo. We remain on track to stabilize our business this year while establishing a solid foundation for a return to growth in fiscal 2027," added the CEO.

Over the course of the year, Capri Holdings expects to see an impact from higher US tariffs but is maintaining its revenue target of between $3.37 billion and $3.45 billion. For the second quarter, the group is forecasting revenue of between $815 million and $835 million, driven by a recovery in demand for luxury goods.