Capri Holdings Ltd

Latest Results (20.05.2026):

Capri Holdings Ltd — second quarter of Fiscal 2026 (ended September 27, 2025): total revenue was $856 million (down 2.5% reported; down 4.2% constant currency), gross margin 61.0%, GAAP operating margin (1.4)% (adjusted operating margin 2.3%), GAAP loss per share $(0.28) and adjusted loss per share $(0.03). Management noted sequential improvement, expects the Versace sale to close in fiscal Q3 and announced a $1 billion share repurchase program to begin in fiscal 2027, with proceeds from the Versace sale intended primarily to reduce debt.

Revenue and Margins

Total revenue $856M, down 2.5% year-over-year (4.2% cc). Gross profit $522M; gross margin 61.0% (prior year 62.3%). Tariffs reduced gross margin by ~130 bps.

Profitability and EPS

Loss from continuing operations $34M (GAAP) yielding $(0.28) diluted per share; adjusted net loss from continuing operations $4M, or $(0.03) diluted, with a $24M adverse impact on adjusted net income from a higher-than-expected effective tax rate.

Brand Performance

Michael Kors: revenue $725M (down 1.8% reported, 3.3% cc), operating income $73M (10.1% margin). Jimmy Choo: revenue $131M (down 6.4% reported, 9.3% cc), operating loss $9M (‑6.9% margin).

Cash, Inventory and Debt

Cash and equivalents $120M; net inventory $766M (down 2.8% YoY). Total borrowings $1.76B; net debt $1.64B (versus $1.58B prior year). Q2 free cash flow was negative $46M (operating cash used $33M; capex $13M).

Versace Sale and Share Repurchase

Sale of Versace to Prada for $1.375B (subject to adjustments) expected to close in calendar H2 2025; proceeds planned largely to repay debt. Board approved up to $1B share repurchase program (three-year) expected to begin in fiscal 2027.

Outlook (continuing operations, adjusted)

FY26 guidance: revenue ~$3.375–3.45B, operating income ≈ $100M, diluted EPS $1.20–1.40, capex ≈ $110M. Q3 guidance: revenue ~$975M–$1.0B, operating margin ~7–8%, diluted EPS $0.70–0.80. Guidance incorporates assumed incremental tariffs by region.

Non-GAAP Adjustments and Drivers

Adjusted results exclude items such as impairment charges, Capri transformation costs, restructuring, store renovation and transaction-related costs; adjusted operating income Q2 was $20M (2.3% margin) after $32M of adjustments. Company discloses that non-GAAP reconciliations are provided in the release.