Key Highlights

● Capri's fiscal second-quarter Revenue fell 5.5% to $809 million.

● Michael Kors revenue fell 8.6% to $663 million; Jimmy Choo grew 11.5% to $146 million.

● Capri guided fiscal 2027 revenue to about $3.42 billion and adjusted EPS to about $2.20.

● Management expects sales to return to growth in the second half of the fiscal year.

Capri Holdings (NYSE:CPRI) is on watch before Friday's open after the owner of Michael Kors and Jimmy Choo reported a smaller fiscal second-quarter revenue decline and said it expects sales to return to growth in the second half of its fiscal year. A pre-market price move for the shares was not confirmed in the sources reviewed.

For the quarter ended Sept. 26, revenue fell 5.5% to $809 million, or 4.9% in constant currency, according to the company's 8-K filing. Adjusted Earnings Per Share were $0.42, and GAAP EPS was $0.25. Versace, which Capri sold to Prada in a deal that closed on Dec. 2, 2025, is now reported as a discontinued operation, so the company is now made up of two brands.

A tale of two brands

Michael Kors, by far the bigger business, generated revenue of $663 million, down 8.6% from a year earlier. Jimmy Choo grew 11.5% to $146 million. The divergence sums up Capri's story: a luxury footwear and accessories Brand gaining momentum while its accessible-luxury flagship works through a long turnaround.

"We are encouraged by the momentum building at both Michael Kors and Jimmy Choo," CEO John Idol said in the release.

For fiscal 2027, Capri guided to revenue of about $3.42 billion and adjusted EPS of about $2.20. For the fiscal third quarter, which includes the holiday season, it forecast revenue of about $1.005 billion and EPS of about $0.95. Whether these targets are above or below analyst forecasts was not confirmed in the materials reviewed.

Why it matters and index membership

Capri is one of the main US-listed fashion groups and serves as a barometer for Demand for accessible luxury handbags and accessories. After the Versace sale, investors are focused on whether Michael Kors can stabilize and whether Jimmy Choo can grow enough to matter.

The shares are listed on the New York Stock Exchange and are part of the NYSE Composite, which tracks all of the exchange's common stocks. As a consumer discretionary name, Capri is exposed to a market that is rotating defensively today: S&P 500 futures were down 1.13% shortly after 8 a.m. ET, according to market data, while Dow futures were flat.

The macro picture for the consumer is mixed. Thursday's government data showed third-quarter GDP growing at a 3.4% annualized rate and September personal spending up 0.5%. However, the personal saving rate was only 3.8%, and headline PCE Inflation was 3.6% year over year, indicating that higher prices are stretching household budgets.

Interest rates add to the pressure. The Federal Reserve held its benchmark at 3.75% to 4.00% this week after a September hike, and CME FedWatch pricing cited in media reports shows about 85% odds of another hike in December. The University of Michigan's consumer sentiment survey hit a five-month low earlier this month, according to market commentary. Elevated gasoline costs, with West Texas Intermediate crude around $104 a barrel, are another strain on discretionary spending.

Risks and what to watch

The main risk is that the Michael Kors decline continues into the holiday quarter, which would make the second-half return to growth harder to deliver. Capri also has to manage promotional activity in a crowded handbag market without damaging its brands, and Tariff costs on imported goods remain a Factor across the industry.

After the 9:30 a.m. ET open, watch how the stock reacts to the guidance and whether management's conference call commentary on Michael Kors trends reassures investors. The holiday shopping season, starting with Black Friday on Nov. 27, is the next real test. Capri's fiscal third-quarter results, covering the holidays, are expected in early 2027.