Fashion
Michael Kors parent Capri Holdings’ revenue exceeds estimates at $856 million in Q2 FY26
Published
November 4, 2025
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.
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The increase was driven primarily by higher reinvested earnings and intra-company loans, indicating continued engagement by existing investors with Bangladesh.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans increased by 25.68 per cent, from $621.96 million to $781.68 million.
Bangladesh’s net FDI inflows increased by 39.36 per cent last year to $1,770.42 million compared with $1,270.39 million in 2024, the Bangladesh Bank said.
The increase was driven primarily by higher reinvested earnings and intra-company loans.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans rose by 25.68 per cent.
Equity capital remained broadly stable, rising by 1.84 per cent, from $544.64 million to $554.64 million in 2025, a release from Bangladesh Investment Development Authority said.
Greenfield project announcements declined by 16 per cent in 2025.
Fibre2Fashion News Desk (DS)
The company’s adjusted EBITDA, excluding Employee Stock Option Plan (ESOP) expenses, rose around 14 per cent YoY to ₹468 crore, while EBITDA margin improved by 20 basis points to around 9.3 per cent. Excluding the reciprocal tariff impact of around ₹36 crore and incremental losses of around ₹13 crore in Bihar and Guatemala, adjusted EBITDA margin stood at around 10.3 per cent.
Pallab Banerjee, managing director, Pearl Global Industries, said: “FY26 marked the company’s second consecutive year of double-digit growth and improved profitability. This performance further solidifies the position of Pearl Global’s diversified operating model and disciplined execution across geographies.”
Pearl Global Industries has reported its highest-ever FY26 revenue of ₹5,025 crore (~$523.93 million), up 11.5 per cent YoY, driven by volume growth and value-added products.
PAT rose 17 per cent to ₹270 crore (~$28.15 million), while Q4 revenue hit ₹1,314 crore (~$137 million).
The company shipped 78.1 million pieces.
Its net worth stands at ₹1,438 crore (~$149.93 million).
He said that geopolitical shifts and Gulf conflicts could lead to energy cost escalation, affecting raw material and logistics costs. However, the company remains prepared to manage these headwinds, supported by its diversified manufacturing base, strong order book, and broad market presence.
The profit after tax (PAT) increased 17 per cent YoY to ₹270 crore (~$28.15 million), the company said in a press release.
On a standalone basis, FY26 revenue stood at ₹1,081 crore, while adjusted EBITDA was ₹67 crore, with EBITDA margin improving by 60 basis points to 6.2 per cent, mainly due to cost restructuring. Standalone PAT rose to ₹69 crore from ₹55 crore in the previous year.
The company’s net worth stood at ₹1,438 crore (~$149.93 million) as of March 31, 2026, compared with ₹1,146 crore a year earlier.
“In FY26, Group delivered another year of resilient performance against a complex geopolitical backdrop. Group achieved, among others, two major milestones this year: revenue crossed INR 5,000 crore mark and installed capacity surpassed 100 million pieces per annum,” said Pulkit Seth, vice-chairman and non-executive director, PGIL.
Seth added that the global apparel industry faced tariff-related disruptions during FY26, with the company’s India operations impacted by tariffs and penal duties imposed by the US. However, he added that Pearl Global leveraged its diversified, multi-country manufacturing presence to mitigate these challenges and deliver double-digit growth.
For the fourth quarter (Q4) of FY26, PGIL posted its highest-ever quarterly revenue of ₹1,314 crore (~$137 million), up 6.9 per cent YoY. Adjusted EBITDA rose 13.7 per cent to ₹135 crore, with margin at 10.3 per cent, the highest EBITDA margin recorded by the company in any quarter. PAT for the quarter stood at ₹81 crore, up 24.6 per cent YoY, PGIL said in a press release.
Standalone revenue during the quarter stood at ₹304 crore, adjusted EBITDA at ₹24 crore, and PAT at ₹14 crore.
PGIL shipped its highest-ever volumes in Q4 FY26 and FY26, at 22 million pieces and 78.1 million pieces respectively. Its annual installed capacity crossed 100 million pieces, reaching around 101 million pieces.
The ongoing capex in Bangladesh is expected to be completed by the first half of FY27 and will add around 6-7 million pieces of capacity during the year.
Fibre2Fashion News Desk (SG)
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