Capri Holdings lowers outlook as Michael Kors weighs on growth
Capri Holdings reported a 3.5% decline in first quarter revenue to $769 million for the period ended 27 June 2026, with weaker performance from Michael Kors offsetting growth at Jimmy Choo.
Michael Kors revenue fell 7.1% year-on-year to $590 million. On a constant currency basis, revenue declined 7.6%. The company noted that approximately $10 million of revenue was attributable to wholesale shipments occurring earlier than anticipated.
Jimmy Choo delivered stronger results, with revenue rising 10.5% year over year to $179 million. On a constant currency basis, Jimmy Choo revenue increased 9.3%.
Capri Holdings reported gross profit of $500 million, with a gross margin of 65.0%, compared with gross profit of $502 million and a gross margin of 63.0% in the prior-year period.
The 200 basis point improvement in gross margin was primarily attributed to higher full-price sell-throughs and lower tariff rates compared with the first quarter of fiscal 2026.
Looking ahead, Capri Holdings cautioned that results could vary materially from current expectations due to external factors, including changes in global economic conditions, additional tariff increases, inflationary pressures, shifts in consumer confidence and foreign currency fluctuations.
The company now expects FY27 revenue of approximately $3.4 billion.
The revised outlook reflects an estimated $50 million impact from lower-than-expected second-quarter revenue at Michael Kors due to inventory delays, a $50 million impact from softer EMEA trends related to the ongoing conflict in the Middle East, and a $35 million impact from foreign currency headwinds compared with previous expectations.
Chairman and CEO John D. Idol said: "Looking beyond fiscal 2027 the opportunity for Michael Kors and Jimmy Choo remains significant.
"As our strategic initiatives continue to gain momentum, Capri Holdings is well positioned to drive sustainable growth, enhance profitability and create meaningful long-term value for our shareholders."
