Key Highlights

  • CPRI shares trading up 16.47% today to $18.70
  • Adjusted diluted EPS of $0.42 for the quarter versus an adjusted loss of $0.03 a year earlier
  • Gross Margin widened roughly 230 basis points to 63.3%
  • Jimmy Choo Revenue grew 11.5% to $146 million
  • Net Debt fell to $336 million from $1.6 billion a year ago

Second-Quarter Profit Swing Powers the Rally

Capri Holdings (NYSE:CPRI) shares are trading up 16.47% today at $18.70 after the owner of Michael Kors and Jimmy Choo reported fiscal second-quarter results for the period ended September 26, 2026. Adjusted diluted Earnings came in at $0.42 per share, against an adjusted loss of $0.03 in the same quarter last year, while GAAP diluted earnings were $0.25 versus a loss of $0.28.

Revenue from continuing operations was $809 million, down 5.5% as reported and 4.9% in constant currency from $856 million. The company said roughly $20 million of sales shifted into the quarter from the third quarter because wholesale shipments went out earlier than planned.

Capri is a global fashion luxury group built around Michael Kors and Jimmy Choo. The Versace Brand was sold to Prada in a deal that closed on December 2, 2025, so the latest figures exclude that business.

Gross Margin Climbs to 63.3% as Tariff Pressure Eases

Gross margin rose about 230 basis points to 63.3%, helped by more full-price sell-through, a favorable brand mix and lower tariff costs. GAAP Operating Margin was 1.2%, while adjusted operating margin reached 3.8%.

Michael Kors revenue fell 8.6% to $663 million, or 8.0% in constant currency, though its operating margin edged up 20 basis points to 10.3%. Jimmy Choo moved the other way, with revenue up 11.5% to $146 million and an operating margin of 1.4%, compared with an operating loss a year ago.

Net Debt Drops to $336 Million as Buybacks Continue

Cash stood at $125 million against total borrowings of $461 million, which puts net debt at $336 million, down from $1.6 billion a year earlier. Operating Cash Flow was $51 million and free cash flow was $36 million after $15 million of Capital spending. Inventory fell 7% to $712 million.

During the quarter Capri repurchased about 10.3 million shares for $150 million, at an average price near $14.56. Approximately $721 million remains available under the program.

Market data shows a market Capitalization of about $1.8 billion as of October 24, a price-to-earnings ratio near 12.4 and a 52-week range of $12.40 to $28.27. Trailing revenue is around $3.45 billion, and the average analyst price target is about $21.63.

Raised Fiscal 2027 Outlook and the Path to Third-Quarter Guidance

Capri lifted its adjusted fiscal 2027 outlook to revenue of about $3.42 billion, Operating Income of about $175 million and diluted earnings of about $2.20 per share. Michael Kors is expected to contribute about $2.77 billion in revenue and Jimmy Choo about $650 million.

For the third quarter, the company guided to revenue of about $1.005 billion, operating income of about $90 million and diluted earnings of about $0.95 per share. That revenue figure absorbs the $20 million timing shift noted above. Management credited sharper assortments and stronger brand desirability for monthly improvement across both brands, and expects total revenue to return to growth in the second half of fiscal 2027 on new collections and higher Marketing spend.