Capri Holdings earnings: revenue fell 5.5% to $809 million, but the outlook went up

Capri Holdings earnings for the second quarter of fiscal 2027 show a company that sold less than a year ago and earned more. Revenue was $809 million for the quarter ended September 26, 2026, down 5.5% on a reported basis and 4.9% in constant currency, according to the company's October 30, 2026 release filed with the SEC. Yet operating income swung to a $10 million profit from a $12 million loss, and Capri raised its full-year outlook.

Capri Holdings earnings in the numbers

The headline figures below are all from continuing operations, meaning Michael Kors and Jimmy Choo only. Versace was sold to Prada Group and the deal closed on December 2, 2025, so every comparison excludes it. For the group's structure, see our guide to Capri's brands after the Versace sale.

• Revenue: $809 million, down 5.5%. About $20 million of it came from wholesale shipments that landed earlier than planned.
• Gross profit: $512 million, a margin of 63.3% against 61.0% a year ago. Capri credits higher full-price sell-throughs, brand mix and lower tariff rates.
• Operating income: $10 million (1.2% margin) against a $12 million loss. Adjusted operating income was $31 million, a 3.8% margin.
• Net income: $27 million, or $0.25 per diluted share. Adjusted earnings were $0.42 per share against an adjusted loss of $0.03 a year earlier.
• Inventory: $712 million, down 7% from a year ago.

Michael Kors and Jimmy Choo moved in opposite directions

Michael Kors, which supplies most of the group's sales, reported revenue of $663 million, down 8.6% (8.0% in constant currency). Roughly $15 million of that was early wholesale shipments, so the underlying drop is a little worse than the headline. Gross margin rose to 61.5% from 59.3%, and operating income was $68 million, a 10.3% margin.

Jimmy Choo reported $146 million, up 11.5% (12.2% in constant currency), with about $5 million of early wholesale shipments. Its gross margin was 71.2%, and operating income of $2 million (1.4% margin) compares with a $9 million loss a year ago.

Compare that with the first quarter. As FashionUnited reported in August, Michael Kors fell 7.1% to $590 million and Jimmy Choo rose 10.5% to $179 million. So Michael Kors got worse by about a point and a half, while Jimmy Choo got slightly better. That sits awkwardly beside the chief executive's claim that trends "improved sequentially each month" across both houses. Month-by-month improvement inside a quarter can coexist with a weaker quarter than the last one, but the release does not publish the monthly figures, so we cannot check it.

What the beat does and does not mean

In August, Capri guided second quarter revenue to about $780 million, operating income of about $10 million and earnings of about $0.20 per share. The actual results of $809 million, $10 million and $0.25 beat on revenue and earnings and matched on operating income. Strip out the $20 million of early shipments and revenue would have been about $789 million, still above the guide.

The early shipments matter for the next quarter. Capri guides third quarter revenue to about $1.005 billion, and says that figure absorbs the $20 million that shifted forward. For Michael Kors it expects about $830 million and for Jimmy Choo about $175 million.

The raised outlook, compared with August

Capri nudged every full-year figure up. These are the changes from the outlook it gave on August 5, 2026, as reported by FashionUnited, to the one in the October 30 release:

• Total revenue: about $3.42 billion, from about $3.4 billion.
• Operating income: about $175 million, from about $170 million.
• Diluted earnings per share: about $2.20, from about $2.15.
• Michael Kors revenue: about $2.77 billion, from about $2.765 billion.
• Jimmy Choo revenue: about $650 million, from about $635 million.

The revenue raise is small, about $20 million, which is the same size as the shipment timing benefit. Put differently, the new revenue outlook is roughly the old one plus the pulled-forward shipments. Capri also still says revenue will return to growth in the second half. Adding the first two quarters ($769 million plus $809 million) and subtracting from $3.42 billion leaves about $1.84 billion for the back half, so the company has to deliver that for the claim to hold.

The outlook assumes an incremental 10% tariff rate on U.S. imports through July 24, 2026 and 10% to 12.5% after that, and the release says results could differ if tariffs, inflation, consumer confidence or exchange rates move.

The balance sheet is the quiet story

Cash was $125 million and borrowings were $461 million, leaving net debt of $336 million. A year earlier net debt was $1.6 billion. In the quarter Capri spent $150 million buying back about 10.3 million shares at an average of about $14.56, and $721 million remained on the authorization. Operating cash flow was $51 million and free cash flow was $36 million. We do not offer a view on the shares. The point for the business is that net debt is far lower than a year ago, in the same period that the Versace sale closed.

What we would watch

Capri's case is that a smaller, more focused business can earn more on less revenue by selling at full price. The margin numbers support that. The sales numbers support it only for Jimmy Choo. For Michael Kors, the question is whether the new collections and extra marketing the company promises can reverse a decline now running at 8% to 9% a quarter.

The next marker is the third quarter, which falls in the holiday period and is guided to about $1.005 billion. If Michael Kors lands near $830 million, the decline will have narrowed. If it misses, the margin gains will start to look like the product of cutting rather than growing. Verdict: improving profit, unproven sales.