The US-based luxury group has lowered its revenue outlook for the 2027 financial year, citing inventory delays at Michael Kors, weaker trends in the EMEA region, and unfavourable foreign exchange rates.
“We are encouraged by our first quarter results, which exceeded our expectations and demonstrated the progress we are making to build a stronger and more profitable business. Our strategic initiatives across both Michael Kors and Jimmy Choo are driving deeper consumer engagement through enhanced brand storytelling and compelling product innovation”, said John D. Idol, the company’s Chairman and Chief Executive Officer.
First-Quarter Results
In the first quarter of the 2027 financial year, which ended on the 7th of June, Capri Holdings recorded a total revenue of 769 million US dollars. This represents a decline of 3.5% (or 4.1% on a constant currency basis) compared to the same period in the previous financial year.
During the period, Michael Kors generated total revenue of 590 million US dollars, which represents a 7.1% decrease (or a 7.6% decrease on a constant currency basis) compared to the first quarter of the 2026 financial year. Approximately 10 million US dollars of revenue was attributable to the earlier-than-anticipated timing of wholesale shipments.
Meanwhile, Jimmy Choo generated revenue of 179 million US dollars, a 10.5% increase (or 9.3% on a constant currency basis) compared to the first quarter of the 2026 financial year.
In the first quarter of this financial year, the company’s gross margin improved year-on-year from 53.0% to 65.0%. The 200-basis point increase was mainly driven by higher full-price sell-throughs and lower tariff rates than in the first quarter of the 2026 financial year.
Capri Holdings reported income from operations of 17 million US dollars in the first quarter, up from 16 million US dollars in the same quarter a year earlier, with operating margin rising from 2.0% to 2.2%. Adjusted income from operations rose to 28 million US dollars, up from 20 million US dollars, and the adjusted operating margin improved to 3.6%, up from 2.5%.
In the first quarter, the company’s net income was 69 million US dollars, or 0.60 US dollars per diluted share, compared to 56 million US dollars, or 0.47 US dollars per diluted share, in the same period of the 2026 financial year. Adjusted net income stood at 76 million US dollars, equivalent to 0.67 US dollars per diluted share, compared to 60 million US dollars, equivalent to 0.50 US dollars per diluted share, in the same period a year earlier.
Fiscal 2027 Outlook
Compared to the previous guidance of 3.53 billion US dollars, Capri Holdings now expects a total revenue of around 3.4 billion US dollars.
This decision reflects the impact of around 50 million US dollars from lower-than-anticipated second-quarter revenue at Michael Kors due to inventory delays, around 50 million US dollars from weaker trends in the EMEA region amid the ongoing conflict in the Middle East, and around 35 million US dollars from adverse foreign currency movements relative to previous expectations.
However, Idol added: “We are taking actions to reduce operating expenses which are enabling us to maintain our fiscal 2027 earnings per share outlook of approximately 2.15 US dollars, representing 40% growth over the prior year”.
Image Credits: michaelkors.eu
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