​Michael Kors parent Capri Holdings’ revenue exceeds estimates at $856 million in Q2 FY26

Michael Kors parent Capri Holdings’ revenue exceeded estimates and totalled $856 million in the second quarter of the 2026 financial year. The business’ net loss rose to $34 million, compared to net income of $42 million a year prior.

“We are encouraged by our second quarter results,” said the company’s chairman and CEO John D Idol in a release posted on the business’ website on November 4. “Trends continued to improve sequentially, which resulted in revenue, gross margin, and operating income exceeding our expectations. This performance demonstrates the progress we are making as we execute against our strategic initiatives to energise our fashion luxury houses.”
 
The business’ revenue dropped by 4.2% year on year in constant currency terms (-2.5% on a reported basis) and its loss from operations totalled $12 million in the quarter ending September 27. Capri Holdings’ gross profit totalled $522 million in the second quarter of the 2026 financial year and the reported gross margin was 61%, compared to $547 million and 62.3% a year prior. Tariffs negatively impacted the gross margin rate by approximately 130 basis points, according to the business, and a higher than anticipated effective tax rate versus its original guidance negatively impacted adjusted net income by $24 million.

Capri Holdings’ brand Michael Kors’ revenue decreased by 1.8% on a reported basis and 3.3% on a constant currency basis in the second quarter of the 2026 financial year, totalling $725 million. The label’s gross profit was $430 million in the second quarter, compared to $451 million a year earlier.
 
The business’ label Jimmy Choo’s revenue totalled $131 million in the past quarter, representing a year on year drop of 6.4% on a reported basis and 9.3% on a constant currency basis. The luxury brand’s gross profit was $92 million in the second quarter this fiscal, compared to $96 million in the second quarter of the 2025 financial year.
 
“With the Versace sale expected to close in our fiscal third quarter, we are now fully focused on the growth of our two iconic brands Michael Kors and Jimmy Choo,” said Idol. “We plan to use the proceeds of the sale to repay the majority of our debt, substantially strengthening our balance sheet and providing greater financial flexibility to both invest in our growth as well as return capital to shareholders in the future. Given the encouraging signs of stabilisation across our business and our planned reduction in debt levels, our Board of Directors has authorised a new $1 billion share repurchase program which the Company expects to begin implementing in fiscal 2027.”
 
In its outlook for the full 2026 financial year, Capri Holdings expects to see its total revenue sit in the range of $3.375 billion and $3.45 billion with an operating income of around $100 million. The business forecasts total revenue of $2.8 billion to $2.875 billion for the Michael Kors brand and $565 million to $575 million for Jimmy Choo for the full financial year.