NYSE$CPRI

Capri Holdings Ltd · Q2 2026 earnings

Q2 2026 earnings · · Before market open · Investor relations

Briefing

Capri Holdings Limited announced its financial results for the second quarter of Fiscal 2026, with revenue decreasing 2.5% and an adjusted operating margin of 2.3%. The company reported a net loss and adjusted net loss per share, reflecting a higher than anticipated tax rate.

Capri Holdings reported a challenging second quarter for fiscal 2026, with total revenue declining by 2.5% to $856 million. Despite the revenue decrease, the company's gross margin and operating income exceeded expectations, driven by sequential improvements. The net loss was $34 million, or $(0.28) per diluted share, with an adjusted net loss of $4 million, or $(0.03) per diluted share, impacted by a higher tax rate. The company is focusing on Michael Kors and Jimmy Choo following the expected Versace sale and has authorized a new $1 billion share repurchase program.

  • Total revenue for Q2 FY26 decreased by 2.5% to $856 million, or 4.2% on a constant currency basis.
  • The company reported a GAAP net loss of $34 million, or $(0.28) per diluted share, and an adjusted net loss of $4 million, or $(0.03) per diluted share.
  • Gross margin was 61.0%, and adjusted operating margin was 2.3%, both exceeding expectations.
  • Capri Holdings authorized a new $1 billion share repurchase program, expected to commence in fiscal 2027, following the anticipated Versace sale and debt reduction.

Headline financials

Total Revenue

$856M

Previous: $1.08B-20.7%
EPS

-$0.22

Previous: $0.20-210.0%
Gross margin

61.0%

Previous: 62.3%-2.1%
Operating margin

-1.4%

Previous: -0.7%-100.0%
Adjusted operating margin

2.3%

Previous: 4.2%-45.2%
Inventory change

-2.8%

No prior period
Michael Kors revenue decline

-1.8%

No prior period
Jimmy Choo revenue decline

-6.4%

No prior period
Jimmy Choo operating margin

-6.9%

Previous: -3.6%-91.7%
Total revenue decline

-2.5%

No prior period
Michael Kors operating margin

10.1%

Previous: 11.8%-14.4%
Capital Expenditures

-$26M

Previous: -$70M+62.9%
Free Cash Flow

-$54M

Previous: $63M-185.7%
Net Income

-$28M

Previous: $24M-216.7%
Operating Income

-$12M

Previous: -$38M+68.4%
Gross Profit

$522M

Previous: $694M-24.8%
Cash & Equivalents

$120M

Previous: $182M-34.1%
Total Assets

$5.62B

Previous: $6.79B-17.3%

Revenue & EPS history

Capri · Revenue · Quarterly

$856M

Q2 2026-20.7%vs Q2 2025
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Capri · $796M total across 2 segments · Q4 2026

  • Michael Kors
    $656M
  • Jimmy Choo
    $140M

Forward guidance

Capri Holdings expects retail trends to improve in the second half of fiscal 2026, leading to a return to growth in fiscal 2027. The company provided guidance for fiscal year 2026 and the third quarter of fiscal 2026, focusing on revenue, operating income, and EPS for the overall company and its Michael Kors and Jimmy Choo brands.

Tailwinds

  • Expected return to growth in fiscal 2027.
  • Anticipated improvement in retail trends in the back half of fiscal 2026.
  • Planned use of Versace sale proceeds to repay the majority of debt, strengthening the balance sheet.
  • Authorization of a new $1 billion share repurchase program, expected to begin in fiscal 2027.
  • Optimism about the sustainable growth potential of Michael Kors and Jimmy Choo.

Headwinds

  • Fiscal Year 2026 total revenue guidance of $3.375 billion to $3.45 billion, indicating continued challenges.
  • Fiscal Year 2026 operating income guidance of approximately $100 million, suggesting ongoing pressure on profitability.
  • Fiscal Year 2026 diluted EPS guidance of $1.20 to $1.40, reflecting a cautious outlook.
  • Jimmy Choo's fiscal year 2026 operating margin expected to be in the negative mid-single-digit range.
  • Guidance reflects incremental tariffs, which could negatively impact financial results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2026

Historical avgQ2 2026

+2.4%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+3.3%

Avg return

30 days after

59%

34 / 58 earnings

Positive

+53.5%

Q1 2024

Best reaction

-25.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-13.4%-12.8%-19.2%
Q2 2026-0.0%+6.7%+33.5%
Q1 2026+14.3%+6.7%+16.9%
Q4 2025+3.1%-0.9%+0.2%
Q3 2025-10.1%-8.5%-13.1%
Q2 2025-6.7%-11.9%+1.3%
Q1 2025-4.2%-6.2%+9.1%
Q4 2024-1.2%+0.5%-3.4%
Q3 2024+1.3%+1.8%+1.2%
Q2 2024-2.3%-1.5%+0.5%
Q1 2024+53.5%+50.0%+52.5%
Q4 2023-13.0%-9.8%-9.3%
Q3 2023-25.5%-22.8%-35.4%
Q2 2023+4.5%+10.9%+21.5%
Q1 2023-1.8%+1.2%-5.3%
Q4 2022+0.6%+4.8%-15.4%
Q3 2022+4.9%+5.4%-11.3%
Q2 2022+19.9%+16.6%+10.8%
Q1 2022+14.2%+16.6%+16.7%
Q4 2021+6.6%+7.1%+6.3%
Q3 2021+6.6%+9.0%+11.6%
Q2 2021+7.2%+20.8%+68.1%
Q1 2021+7.2%+20.1%+22.2%
Q4 2020-2.6%+0.5%-4.2%
Q3 2020+1.9%-2.2%-25.5%
Q2 2020+4.5%+6.7%+11.9%
Q1 2020+3.5%-5.5%-11.1%
Q4 2019-13.1%-12.5%-10.8%
Q3 2019+8.2%+4.5%+0.1%
Q2 2019-12.8%-16.9%-29.5%
Q1 2019+10.3%+8.9%+10.3%
Q4 2018-15.9%-11.2%-2.4%
Q3 2018-8.3%-7.0%-6.2%
Q2 2018+14.7%+14.9%+25.7%
Q1 2018+23.0%+20.0%+13.8%
Q4 2017-8.8%-4.9%-0.1%
Q3 2017-8.3%-7.0%-11.7%
Q2 2017-1.0%-6.5%-1.6%
Q1 2017-2.0%-0.3%-4.7%
Q4 2016+11.2%+16.1%+17.2%
Q3 2016+27.9%
Q2 2016+10.6%
Q1 2016+11.0%
Q4 2015-24.4%
Q3 2015+0.9%
Q2 2015-7.2%
Q1 2015-3.3%
Q4 2014-3.6%
Q3 2014+19.1%
Q2 2014+6.3%
Q1 2014+2.4%
Q4 2013+6.0%
Q3 2013+7.6%
Q2 2013-4.9%
Q1 2013+16.6%
Q4 2012+1.7%
Q4 2011+1.7%
Q4 2010+1.7%
Q1 2012

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