Capri Holdings reported revenue of $769 million for Q1, down 3.5% on a reported basis and 4.1% at constant currency compared to the same period last year.
The luxury fashion group posted an operating margin of 2.2%, while adjusted operating margin improved to 3.6%. Net income rose to $69 million or $0.60 per diluted share compared to $56 million a year earlier.
The company also reduced its net debt significantly to $224 million, down from $1.5 billion at the end of the first quarter of fiscal 2026.
Michael Kors, Capri Holdings largest brand, reported $590 million in Q1 revenue, down 7.1% on a reported basis and 7.6% at constant currency. The company said around $10 million in revenue was linked to wholesale shipments. Despite the decline in sales, the brand’s gross margin improved by 280 basis points to 63.9%, supported by stronger full price sell through and lower tariff rates.
Jimmy Choo, meanwhile, continued to outperform with revenue rising 10.5% to $179 million or 9.3% at constant currency. Operating income increased to $13 million, up from $4 million a year earlier, while operating margin improved to 7.3% from 2.5%, driven by higher sales and improved operating leverage.
Commenting on the results, Chairman and CEO John D. Idol said the company’s Q1 performance exceeded expectations and reflected progress in strengthening both the Michael Kors and Jimmy Choo brands through product innovation and stronger consumer engagement.
Looking ahead, Capri Holdings revised its fiscal 2027 revenue outlook to approximately $3.4 billion, citing inventory delays at Michael Kors, softer demand across Europe, the Middle East and Africa (EMEA), and foreign currency headwinds.
