Capri Holdings — parent company of Michael Kors and Jimmy Choo — said revenues declined 5.9% year-on-year on a constant currency basis to $1.03 billion in the third quarter of fiscal 2026, ended December 27. Results beat both internal and analyst expectations.
The results mark the company’s first quarter since the completion of Prada Group’s acquisition of Versace from Capri in December 2025. “Recently, we completed the sale of Versace, which was a thoughtful decision to strengthen our financial foundation, ensuring we have the flexibility to support Michael Kors and Jimmy Choo’s strategic initiatives, and enhance long‑term shareholder value,” said Capri chair and CEO John D. Idol.
This quarter, Capri began to utilize the approximate $1.4 billion in proceeds from the sale to reduce its debt. As a result, the group ended the quarter with $154 million in cash and a debt of $234 million, resulting in an approximate net debt of $80 million, interim CFO Rajal Mehta told investors, versus the approximate $1.6 billion net debt at the end of the second quarter.
By brand, Michal Kors’s Q3 revenues fell 7.3% year-on-year to $858 million, while Jimmy Choo’s rose 1.9% to $167 million.
“We were pleased with our third-quarter performance, which exceeded our expectations. Across both Michael Kors and Jimmy Choo, we continue to advance our strategic initiatives to position our iconic brands for long-term success,” Idol said. “Looking ahead, we remain confident that these strategies will support a return to growth in fiscal 2027, as well as establish the groundwork for sustainable performance well into the future.”
Revenues in the Americas fell 7% to $646 million in the third quarter. “We were pleased with the sequential improvement, particularly in the retail trends in North America for Michal Kors,” Mehta said, noting that the company expects continued sequential improvement in Q4. EMEA (Europe, the Middle East and Africa) revenues increased 5% to $268 million, while Asia revenues fell 4% to $111 million.
Executives addressed the recent Saks Global bankruptcy and its impact on the company. Capri is owed $33 million, per the court filings. Saks had reserved $15 million, Mehta said, adding that the loss is “not very material” to the group. “[Exposure] is across all the brand areas within Jimmy Choo, Michael Kors Collection, as well as MMK product. But as I stated, we have reserved for that, and we are encouraged that we can work with them to begin shipping.” Idol added that Capri is excited about Saks’s new management team. “They’ve been through this before, with Neiman Marcus, and we have a lot of confidence in what their strategy is. We also think that a leaner Saks Global will be successful and very focused, so we intend on being very supportive of their strategies and help[ing] them succeed,” he added.
Looking to the fourth quarter, Capri’s tariff mitigations will continue, Mehta told investors, anticipating a majority offset by 2027. “You’ll begin to see some of the tariff mitigation efforts continue regarding our sourcing efficiencies and targeted price increases, and then as we look forward to the 2027 full year, we expect to offset a majority of the tariff impact,” he said.
Capri anticipates full-year 2027 revenues to land between $3.45 and $3.475 billion, with Michal Kors generating approximately $2.86 to $2.875 billion; and Jimmy Choo approximately $590 to $600 million. “We anticipate a sequential improvement in retail trends in the fourth quarter, and a return to growth in fiscal 2027,” Idol said. “Long term, we remain optimistic about the sustainable growth potential of both Michael Kors and Jimmy Choo.”
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