Capri Holdings Limited has reported a net loss for the second quarter of its 2025/26 fiscal year, with revenues also declining, according to its latest earnings update.
For the quarter ended 27th September 2025, revenue from continuing operations amounted to US $ 856 million, marking a 2.5% drop year-on-year and a 4.2% decline on a constant-currency basis.
The group’s Michael Kors label recorded revenue of US $ 725 million (down 1.8% reported, 3.3% at constant currency), while Jimmy Choo saw revenues of US $ 131 million, down 6.4% reported and 9.3% at constant currency.
Gross profit declined to US $ 522 million from US $ 547 million in the prior year, and the gross margin narrowed to 61.0% from 62.3%, impacted in part by higher tariffs.
Operating loss widened to US $ 12 million, representing an operating margin of –1.4%, compared with a loss of US $ 6 million and margin of –0.7% in the prior-year quarter. On an adjusted basis, operating income was US $ 20 million (2.3% margin) compared with US $ 37 million (4.2% margin) last year.
Despite the setbacks, Capri Holdings did not cut its full-year guidance. The group continues to expect revenues for fiscal 2026 in the range of US $ 3.375 billion to US $ 3.45 billion and adjusted operating income around US $ 100 million.
Chairman and Chief Executive John D. Idol stated that the quarter’s results gave the company confidence, noting that revenue, gross margin and operating income all exceeded expectations and reflected “the progress we are making as we execute against our strategic initiatives”.
As the disposal of its Versace business to Prada S.p.A. draws near, Capri indicated it will use the proceeds to reduce debt and boost financial flexibility, and has authorised a new US $ 1 billion share repurchase programme to commence in fiscal 2027.
With the luxury market remaining challenging, Capri expects the retail environment to improve in the second half of the fiscal year, positioning itself for growth in 2027.
