Capri Holdings on Tuesday improved its full-year revenue forecast for fiscal 2026, pointing to sustained consumer demand for its footwear, handbag and apparel assortments across its Jimmy Choo and Michael Kors marques. The stock rose roughly 4% in pre-market trading on the guidance update.
The company has been focused on steadying its core holdings after selling Versace to Prada late last year. Management continues to navigate margin pressure stemming from tariffs and an uneven pattern of demand across different geographic regions.
In the quarter ended December 27, Capri recorded revenue of $1.03 billion, a 4% decline versus the prior year period. That result nonetheless narrowly topped analysts' expectations of about $1.00 billion, based on data compiled by LSEG. On a per-share basis, Capri reported earnings of $0.81 for the quarter, above the $0.77 consensus estimate.
Brand-level performance was mixed. The larger Michael Kors label remained under pressure, with sales down 5.6% in the third quarter, while Jimmy Choo posted a 5% increase in sales. Those divergent trends are a focal point for the company as it seeks to balance growth opportunities with margin management across its portfolio.
Following the quarter, Capri revised up its fiscal 2026 revenue outlook to a range of $3.45 billion to $3.48 billion, compared with a prior projection of $3.38 billion to $3.45 billion.
Context and near-term considerations
Capri is working to stabilize revenue and margins after the portfolio change that followed the Versace sale. The company explicitly cited tariff-related margin pressures and uneven regional demand as ongoing challenges. While the revenue and EPS beats for the quarter indicate resilience, the variance between the Michael Kors and Jimmy Choo brand trajectories highlights the unevenness of its recovery.
What investors and market participants will likely watch next
- Whether Jimmy Choo's sales momentum sustains and can further offset pressure at Michael Kors.
- How tariffs and regional demand shifts continue to affect margins and gross profit performance.
- Execution against the refreshed full-year revenue range and any future adjustments to guidance.
Capri's updated guidance and the quarter's outperformance on EPS provide a cautiously positive snapshot, while the company still faces identifiable headwinds tied to costs and uneven brand performance.