Capri Holdings Limited Sets Stage for Sustainable Growth with Strong Q2 Performance
Capri Holdings Limited, the parent company of Michael Kors and Jimmy Choo, has reported a strong second quarter fiscal 2027 performance, driven by improving trends in both luxury houses. Chairman and Chief Executive Officer John Idol expressed encouragement at the momentum building across both brands, citing evidence of elevating brand desirability, strengthening product assortments, and creating deeper connections with consumers.
The company's new fall product introductions have generated some of the strongest full-price sell-throughs seen in years, underscoring the strength of innovative product designs and positive consumer response to collections. At both Michael Kors and Jimmy Choo, strategic initiatives are becoming increasingly evident, reinforcing expectations that Capri will return to revenue growth in the second half of the year.
Based on Q2 performance and expectations for the remainder of the year, Capri has increased its fiscal 2027 revenue and earnings per share guidance. The company believes the progress made across both luxury houses provides a strong foundation for sustainable long-term growth.
Total company revenue was $809 million, down 5.5% versus last year, while operating income increased 55%. This strong profit growth contributed to earnings per share of $0.42 versus a loss of $0.03 per share last year. Michael Kors revenue decreased 8.6% year-over-year, ahead of expectations, due primarily to a shift in wholesale shipment timing.
Revenue was impacted by approximately $50 million due to inventory delays, which constrained product availability. However, as fall assortments began to arrive later in the quarter, sales trends improved sequentially each month, driven by the positive consumer response to new product arrivals. Additionally, revenue was impacted by a continued focus on improving quality of sale.
In the full-price channel, sales declined as the company focused on quality of sale. However, with new product arriving and the impact from quality of sale initiatives moderating, Capri expects the full-price channel to return to growth in the back half of the year.
