U.S. luxury fashion group CAPRI HOLDINGS posted total revenue of $1.025 billion, down 4% year-over-year, slightly above analyst estimates of around $1 billion. Adjusted earnings per share came in at $0.81, up 30% from the prior year and ahead of consensus forecasts of $0.77. Gross margin declined to 60.8% from 63.1% a year ago, reflecting higher-than-expected tariffs.
Michael Kors revenue decreased 5.6% to $858 million, while Jimmy Choo grew 5% to $167 million. Adjusted operating margin for the company was 7.7%, compared with 9.1% in the prior year. Capri Holdings significantly reduced its net debt to $80 million by the end of the quarter, following the sale of its Versace business. The company generated $252 million in free cash flow and cut net inventory by 6.5% year-over-year.
Despite the EPS beat, investors reacted cautiously to the softer revenue trends and ongoing margin pressures. Shares were down almost 12% at about $20 late morning on Tuesday.
Michael Kors SS 2026
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