The Tamesis
Capri Holdings, the parent company of Michael Kors and Jimmy Choo, said revenue in the third quarter of fiscal 2026, which ended Dec. 27, fell 5.9% year-on-year to $1.03 billion on a constant currency basis. The results beat internal and analyst expectations.
The results mark the company’s first quarterly performance since the Prada Group completed its acquisition of Versace in December 2025. “We recently completed the sale of Versace, a thoughtful decision designed to strengthen our financial foundation, ensure we have the flexibility to support the strategic initiatives of Michael Kors and Jimmy Choo, and enhance long-term shareholder value,” said Capri Chairman and Chief Executive Officer John D. Idol.
During the quarter, Capri began using approximately $1.4 billion in proceeds from the sale to reduce debt. Interim chief financial officer Rajal Mehta told investors the group ended the quarter with $154 million in cash and $234 million in debt, giving it a net debt of about $80 million, compared with about $1.6 billion at the end of the second quarter.
By brand, Michal Kors’ third-quarter revenue fell 7.3% year-on-year to US$858 million, while Jimmy Choo increased 1.9% to US$167 million.
“We are pleased with our third quarter results, which exceeded our expectations. Across Michael Kors and Jimmy Choo, we continue to advance our strategic initiatives to position our iconic brands for long-term success,” said Idol. “Looking forward, we remain confident that these strategies will support a return to growth in fiscal 2027 and lay the foundation for sustainable performance going forward.”
Revenue in the Americas region fell 7% to $646 million in the third quarter. “We are pleased with the sequential improvement, particularly with Michal Kors’ retail trends in North America,” Mehta said, noting that the company expects sequential improvement to continue in the fourth quarter. EMEA (Europe, Middle East and Africa) revenue increased 5% to $268 million, while Asia revenue fell 4% to $111 million.
Executives discuss the recent Saks Global bankruptcy and its impact on the company. Capri owes $33 million, according to court documents. Saks set aside $15 million, Mehta said, adding that the loss was “not material” to the group. “[Exposure] Covering all brand areas of Jimmy Choo, Michael Kors Collection and MMK products. But like I said, we’re ready for this and we’re excited to work with them to start shipping. Idol added that Capri is excited about Saks’ new management team. “They’ve been through this before with Neiman Marcus and we’re very confident in their strategy.” We also believe that a streamlined Saks Global will be successful and highly focused, so we intend to strongly support their strategy and provide assistance[ing] They succeeded,” he added.
Looking ahead to the fourth quarter, Capri’s tariff reductions will continue and are expected to offset most tariffs by 2027, Mehta told investors. “You’re going to start to see some of the tariff relief work continue in terms of our sourcing efficiencies and target price increases, and then as we look forward to full year 2027, we expect to offset most of the tariff impact,” he said.
Capri expects full-year revenue in 2027 to be between US$345 and US$3.475 billion, of which Michal Kors’ revenue is approximately US$286 to US$2.875 billion; Jimmy Choo’s value is approximately US$590 to US$600 million. “We expect retail trends to improve sequentially in the fourth quarter and return to growth in fiscal 2027,” Idol said. “In the long term, we remain optimistic about the sustainable growth potential of Michael Kors and Jimmy Choo.”
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