Capri Lifts Forecast as Jimmy Choo Shines and Kors Slows

A Quarter of Two Halves for Capri

Capri Holdings closed the second quarter of its 2027 financial year, the three months to 26 September, with revenue of $809 million. That is a decline of 5.5 per cent year on year, or 4.9 per cent at constant currency. The group also flagged that roughly $20 million of the total came from wholesale shipments delivered ahead of schedule, business that had originally been pencilled in for the third quarter.

Strip that timing effect out and the underlying picture looks steadier than the headline number suggests. The two remaining brands in the portfolio are travelling in opposite directions, and the group’s profitability improved sharply even as sales slipped.

Michael Kors Under Pressure, Jimmy Choo on the Front Foot

Michael Kors, still by far the larger of the two businesses, brought in $663 million, down 8.6 per cent. The brand remains the group’s revenue engine, but the direction of travel is downward.

Jimmy Choo told a different story. Revenue rose 11.5 per cent to $146 million, and the label moved back into operating profit with a gain of $2 million. For a smaller brand operating in a soft luxury market, that combination of double-digit growth and a return to the black is a meaningful milestone.

The split matters for anyone reading the group’s numbers. A single set of consolidated figures can obscure the fact that one brand is contracting while the other is gaining ground, and the divergence shapes how management allocates investment going forward.

Margins Do the Heavy Lifting

Gross margin climbed 230 basis points to 63.3 per cent. Capri credits three factors: a higher proportion of full-price selling, a more favourable brand mix, and lower tariff rates. In plain terms, the group sold more at full ticket and benefited from a cost environment that was kinder than a year earlier.

That margin gain flowed through to the bottom line in a striking way. From continuing operations, Capri posted a net profit of $27 million, compared with a loss of $34 million in the same period a year before, a swing of $61 million.

One structural change explains part of the comparison: Versace is no longer in the numbers. Capri sold the house to Prada in December 2025, so these results reflect a leaner group built around Michael Kors and Jimmy Choo.

Momentum, Month by Month

John D. Idol, chairman and chief executive officer, said the company was encouraged by the momentum building across both brands, and noted that trends improved month by month through the quarter at Michael Kors and Jimmy Choo alike. On that basis, he expects the group to return to revenue growth in the second half of the financial year.

Whether that expectation holds will depend largely on Michael Kors stabilising. Jimmy Choo’s growth is welcome, but it starts from a much smaller base, so the group’s top line will continue to be swayed by its largest brand. The early wholesale shipments are also worth keeping in mind: they flattered this quarter and will not repeat in the next one, which makes the second-half growth target a more demanding test.

What the Raised Guidance Means

Capri has lifted its outlook for the full year. It now expects revenue of around $3.42 billion and adjusted diluted earnings per share of approximately $2.20.

The guidance rests on three assumptions: that gross margin holds near its improved level, that Jimmy Choo sustains its current trajectory, and that Michael Kors at least stops deteriorating. Of those, the margin question is the least predictable, since full-price selling and tariff rates can shift quickly.

The Takeaway for Shoppers and Investors

For customers, the message is mostly about positioning. A group leaning harder on full-price selling is a group less reliant on markdowns, which tends to mean tighter assortments and less discounting on the shop floor. Jimmy Choo’s renewed profitability may also bring more visible investment in that brand.

For investors, the quarter offers a clear split: improving profitability and a confident forecast on one side, a shrinking core brand on the other. The raised guidance is a statement of belief from management. The next two quarters will show whether Michael Kors can hold its ground while Jimmy Choo builds on its gains.

The removal of Versace simplifies the story considerably. What remains is a two-brand group with one established name in retreat and one smaller label on the rise, and a margin story doing much of the work in between.