Michael Kors owner 'well positioned' to accelerate growth despite revenue drop

Capri Holdings reported a 3.7% decrease in revenue to $796 million (£593 million) for the fourth quarter ended 28 March 2026, as growth at Jimmy Choo partially offset continued declines at Michael Kors. On a constant currency basis, total revenue declined 7%.

By brand, Michael Kors generated revenue of $656 million (£489 million) during the quarter, down 5.5% on a reported basis and 8.4% on a constant currency basis.

Meanwhile, Jimmy Choo reported revenue of $140 million (£104 million), increasing 5.3% on a reported basis and remaining flat on a constant currency basis.

Gross profit for the quarter increased to $516 million (£384 million) from $495 million (£369 million) in the prior-year period, while gross margin improved to 64.8% from 59.9%.

John D. Idol, Chairman and Chief Executive of Capri Holdings, said the company was encouraged by the progress made during fiscal 2026 in executing strategic initiatives designed to strengthen Michael Kors and Jimmy Choo.

"Throughout the year, we took deliberate actions to strengthen product innovation, brand desirability and consumer engagement and we see clear evidence that these efforts are resonating with consumers. Early validation of our strategic initiatives and improving trends across both brands reinforce our confidence in their return to revenue and earnings growth," said Idol.

“A year ago, our priority was to stabilise the business and create a stronger foundation for growth. Today, we are building upon the improving trends resulting from the success of our strategic initiatives.  With a strengthened foundation and clear strategic priorities, we are well positioned to accelerate growth, enhance profitability and deliver sustainable long-term value for our shareholders.”

For fiscal 2027, Capri Holdings expects total revenue of approximately $3.525 billion (£2.6 billion) and operating income of approximately $190 million (£141 million). The company projects revenue of $2.9 billion (£2.1 billion) for Michael Kors and $625 million (£466 million) for Jimmy Choo.

For the first quarter of fiscal 2027, Capri Holdings expects total revenue of $750 million (559 million), including projected revenue of $585 million (£436 million) for Michael Kors and $165 million (£123 million)for Jimmy Choo.

Capri Holdings also stated that, following a February 2026 decision by the US Supreme Court regarding tariffs imposed under the International Emergency Economic Powers Act (IEEPA), the company expects to recover approximately $65 million (£48 million) in previously paid tariffs. The company recorded a receivable for the anticipated refund as of 28 March 2026.