American fashion holding company Capri Holdings Limited has reported revenues of $1.025 billion in the third quarter (Q3) of fiscal 2026 (FY26) ended December 27, 2025, down 4 per cent year on year (YoY) on a reported basis and 5.9 per cent in constant currency terms. Total operating margin improved to 4.5 per cent from 2.4 per cent a year earlier, while adjusted operating margin was 7.7 per cent. Earnings per share (EPS) were $0.47, compared with $0.05 in the prior year, while adjusted earnings per share increased to $0.81.

The gross profit for the quarter was $623 million, with a gross margin of 60.8 per cent, compared with $674 million and 63.1 per cent in the prior year. The company noted that underlying gross margins expanded by 70 basis points, although this was offset by higher-than-anticipated tariffs.

Capri Holdings has reported revenue of $1.025 billion in Q3 FY26, down 4 per cent YoY, while operating margin improved to 4.5 per cent.
Adjusted EPS rose to $0.81.
Strong cash flow and the Versace divestment reduced net debt to $80 million.
Michael Kors saw revenue decline, while Jimmy Choo delivered growth.
The company expects a return to growth in FY27.

The income from operations increased to $46 million, compared with $26 million a year earlier. On an adjusted basis, income from operations was $79 million, down from $97 million in the prior-year period. Net income rose sharply to $57 million, while adjusted net income reached $98 million, Capri Holdings said in a press release.

Net inventory declined 6.5 per cent YoY to $663 million. Operating cash flow for the quarter was $271 million, while capital expenditure totalled $19 million, resulting in free cash flow of $252 million. Cash and cash equivalents stood at $154 million, with total borrowings of $234 million, bringing net debt down sharply from $1.17 billion a year earlier to $80 million.

Michael Kors reported Q3 revenue of $858 million, down 5.6 per cent on a reported basis and 7.3 per cent in constant currency terms. Gross margin declined to 59.7 per cent from 62.6 per cent, while operating income fell to $119 million, resulting in an operating margin of 13.9 per cent.

In contrast, Jimmy Choo delivered growth during the quarter, with revenue rising 5 per cent on a reported basis and 1.9 per cent in constant currency terms to $167 million. The gross margin improved slightly to 66.5 per cent. The brand posted operating income of $3 million, reversing an operating loss of $6 million in the prior year.

The company completed the sale of its Versace business on December 2, 2025, following an agreement signed with Prada SpA in April 2025. As a result, Versace has been classified as discontinued operations, with the reported results focusing solely on continuing operations.

“We were pleased with our third quarter performance which exceeded our expectations. Across both Michael Kors and Jimmy Choo, we continue to advance our strategic initiatives to position our iconic brands for long-term success. Looking ahead, we remain confident that these strategies will support a return to growth in fiscal 2027 as well as establish the groundwork for sustainable performance well into the future,” said John D Idol, chairman and CEO of Capri Holdings.

“Recently we completed the sale of Versace which was a thoughtful decision to strengthen our financial foundation, ensuring we have the flexibility to support Michael Kors and Jimmy Choo’s strategic initiatives and enhance long-term shareholder value. The proceeds from the sale were used to significantly reduce our debt levels and we ended the quarter with $80 million of net debt,” added Idol.

Looking ahead, Capri Holdings provided adjusted, non-GAAP guidance for full FY26 based on continuing operations. The company expects total revenue of approximately $3.45-3.47 billion and operating income of around $100 million. Diluted EPS are projected in the range of $1.3-1.4, with capital expenditure of approximately $100 million.

For Michael Kors, the company expects revenue of $2.86-2.87 billion and an operating margin in the high single-digit range. Jimmy Choo is forecast to generate revenue of $590-600 million, with operating margin in the negative low single-digit range.

Fibre2Fashion News Desk (SG)

Cambodia’s manufacturing sector is expected to have grown by 8.5 per cent in 2025, while overall economic growth in the year is projected at around 5 per cent, according to the National Bank of Cambodia (NBC).

Last year’s manufacturing sector growth was lower than that of 2024, when growth reached 11.6 per cent.

Garment manufacturing output is estimated to have grown by 7.1 per cent YoY last year compared to 15.8-per cent growth in 2024, while non-garment manufacturing expanded by an estimated 10 per cent compared to 6.9-per cent growth in 2024.

Cambodia’s manufacturing sector is expected to have grown by 8.5 per cent in 2025, while overall economic growth in the year is projected at around 5 per cent, the National Bank of Cambodia said.
Garment manufacturing output is estimated to have grown by 7.1 per cent last year compared to 15.8-per cent growth in 2024, while non-garment manufacturing grew by 10 per cent compared to 6.9-per cent in 2024.

However, armed clashes along the Cambodia-Thailand border affected factories and enterprises located near the border, NBC was cited as saying by domestic media reports.

Fibre2Fashion (DS)

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China’s share of Cambodia’s fabric imports has risen steadily over recent years, even as overall import volumes expanded. Total fabric imports stood at $*.*** billion in ****, with China supplying **.** per cent, before rising to $*.*** billion in **** with China’s share at **.** per cent. In ****, imports increased further to $*.*** billion, with China’s share climbing to **.** per cent, culminating in near-total dominance in ****.