Projects hopeful return to revenue expansion by 2027 for Capri

Capri Holdings Reports Q1 Fiscal 2026 Results, Shows Signs of Recovery

Capri Holdings, the luxury fashion group behind brands like Michael Kors, Jimmy Choo, and Versace, has released its first quarter fiscal 2026 earnings, showing a 6% year-over-year decrease in revenue to $797 million. Despite the decline, the company's results were ahead of expectations and indicate a potential turnaround.

John Idol, the chairman and CEO of Capri Holdings, stated that the company is "on track" to stabilize its business this year and expects to return to revenue growth by its 2027 fiscal year. In a positive sign, the decreases in revenue for Q1 were not as steep as the results over the last few quarters.

The company's Q1 gross profit also saw a decrease, falling from $535 million in the same period last year to $502 million. Each brand within Capri Holdings experienced decreases in revenue, with Michael Kors, the main focus of the company's turnaround efforts, reporting a 6% year-over-year decrease, bringing in $635 million. Jimmy Choo, another brand within the group, saw a 6.4% year-over-year decrease, with a total of $162 million.

Capri Holdings did not include Versace's results in its earnings statement, as the brand is expected to be sold to the Prada Group later this year. The company's projections for 2026 include the anticipated impact of tariffs on regions it sources from, including the EU, Cambodia, Indonesia, Bangladesh, Vietnam, India, and China.

For the 2026 fiscal year, Capri Holdings expects total revenue to range from $3.375 billion to $3.45 billion. The company also expects Michael Kors' revenue for the 2026 fiscal year to be approximately $2.8 billion.

John Idol also stated that Jimmy Choo is not for sale, indicating confidence in its improvement. Capri Holdings expects to return to revenue growth by its 2027 fiscal year, a promising sign for the future of the luxury fashion group.

The company restructured its executive suite in 2024, with Idol taking on the role of CEO of the Michael Kors brand. Capri Holdings' Wednesday results were ahead of the company's expectations, offering a positive start to the fiscal year.

In Q4 of 2025, Capri Holdings' total revenue declined 15.4%, and in Q3, the revenue fell 11.6%. Despite these challenges, the company remains optimistic about its future and is working diligently to stabilize its business and restore growth.