Michael Kors plans to open 50 to 75 new stores next year, Capri Holdings said, even as second-quarter revenue fell 8.6% to $663 million. Chief executive officer John Idol said renovated stores draw more traffic and sales. The chain has renovated 50 stores, plans 25 more this year and aims for 300. It is also adding Jet Set Lounges, in-store cafes; there are seven today, all in flagship locations. The store count fell to 655 from 691 a year earlier. Idol expects a return to growth beyond fiscal 2027, with $4 billion in revenue. Analyst Neil Saunders of GlobalData said the real test is making more money from more sales. Sister brand Jimmy Choo grew 11.5% to $146 million.

Capri Q2 earnings call highlights. Capri (NYSE:CPRI) reported second-quarter fiscal 2027 results above its expectations and raised its full-year revenue and earnings outlook, citing improving sales trends at Michael Kors and continued momentum at Jimmy Choo. Total revenue declined 5.5% year over year to $809 million, or 4.9% on a constant-currency basis. However, operating income rose 55% to $31 million, while diluted earnings per share improved to $0.42 from a loss of $0.03 per share a year earlier. The company said the quarter benefited from higher full-price sell-throughs, gross-margin gains and cost discipline. "We are encouraged by the momentum building at both Michael Kors and Jimmy Choo," Chairman and Chief Executive Officer John Idol said. He said the company expects total revenue to return to growth in the second half of fiscal 2027, supported by product introductions, marketing investments and efforts to improve the consumer experience. Michael Kors sales decline moderates amid inventory constraints. Michael Kors revenue fell 8.6% to $663 million during the quarter, though Capri said the result was ahead of its expectations. The brand was affected by approximately $50 million in inventory delays that constrained product availability, as well as planned actions to reduce promotional activity and markdown inventory. Capri reduced Michael Kors markdown inventory by about 40% and promotional activity by about 50% year over year. While those actions pressured revenue, they contributed to higher average unit retail prices, stronger full-price sell-throughs and gross-margin expansion, according to management. Michael Kors gross margin expanded 220 basis points to 61.5%. Its operating margin increased 20 basis points to 10.3%, as improved gross margin more than offset expense deleverage from lower sales. Idol said sales trends improved sequentially each month as fall assortments arrived. He highlighted demand for new accessories, including the Hamilton Soft handbag, as well as footwear styles such as the Jennings loafer and Piper Flex ballet flat. The company said it was pursuing additional inventory for certain products where demand exceeded expectations. Revenue in Michael Kors' Americas business declined 11%, while EMEA sales fell 5% and Asia revenue declined 1%. Capri said the EMEA result reflected inventory delays and the broader effects of the ongoing conflict in the Middle East. The company has renovated 50 Michael Kors stores as part of a plan to renovate 300 locations. Management said renovated stores have produced higher traffic and revenue, and it expects to complete roughly 25 additional renovations during the year. Idol also said Capri expects to open between 50 and 75 new Michael Kors stores in fiscal 2028. Jimmy Choo delivers double-digit growth. Jimmy Choo revenue rose 11.5% to $146 million, or 12.2% in constant currency. The result included approximately $5 million of wholesale revenue that shifted from the third quarter into the second quarter because of earlier-than-expected shipments. Revenue increased 24% in the Americas and 13% in EMEA, while Asia sales declined 7%. In the company's own retail channel, Jimmy Choo sales rose by the mid-single digits, led by double-digit growth in the Americas and high-single-digit growth in EMEA. Jimmy Choo's gross margin rose 100 basis points to 71.2%, primarily reflecting higher full-price sell-throughs. The brand's operating margin improved 830 basis points to 1.4%, supported by higher revenue and expense management. Idol said accessories revenue at Jimmy Choo increased by double digits, led by the Bon Bon and Cinch handbag franchises and growth in newer Bar and Curve styles. The company also cited demand for casual footwear, including the Margot flat and Scarlett kitten heel, alongside continued growth in dress styles such as Azia, Sacora and Faiz. Capri reiterated its expectation that Jimmy Choo will return to profitability in fiscal 2027. Management said it sees a long-term opportunity for the brand to reach $800 million in revenue with operating margins in the low-double-digit range. Margins, balance sheet and capital returns. Companywide gross margin increased 230 basis points to 63.3%, driven by higher full-price sell-throughs, brand mix and lower tariff rates compared with the prior-year period. Operating expenses declined $21 million, as savings initiatives and lower variable costs outweighed inflationary pressures. Capri ended the quarter with $125 million in cash and $461 million in debt, for net debt of $336 million, down from $1.6 billion a year earlier. During the quarter, the company repurchased $150 million of shares, or 10.3 million shares, reducing its share count by approximately 9%. As of Sept. 26, 2026, $721 million remained available under its repurchase authorization. Fiscal 2027 outlook raised. Capri now expects fiscal 2027 revenue of approximately $3.42 billion, including $2.77 billion at Michael Kors and $650 million at Jimmy Choo. The company continues to forecast gross margin of about 64%, operating expenses of roughly $2 billion and operating income of approximately $175 million, which would represent a 50% increase from the prior year. The company raised its expected share repurchases for the year to $300 million from its prior $200 million outlook. It now expects diluted earnings per share of $2.20, representing projected growth of 45% from the prior year. For the fiscal third quarter, Capri expects revenue of just over $1 billion, operating income of about $90 million and diluted earnings per share of $0.95. The outlook includes the effect of approximately $20 million in wholesale shipments that shifted from the third quarter into the second quarter, as well as greater foreign-currency headwinds. About Capri (NYSE:CPRI). Capri Holdings Limited (NYSE: CPRI) is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands. Capri's principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances. The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels.

Capri (NYSE:CPRI) posts quarterly earnings results, beats expectations by $0.21 EPS. October 31, 2026 Key points. * Capri beat quarterly expectations, reporting EPS of $0.42 versus the $0.21 consensus and revenue of $809 million versus $786.55 million expected. Gross margin expanded to 63.3%, and the company returned to profitability despite revenue declining 5.5% year over year. * Management raised its fiscal 2027 outlook to approximately $3.42 billion in revenue, $175 million in operating income and $2.20 in diluted EPS. Jimmy Choo delivered 11.5% revenue growth, while Michael Kors showed improving product momentum. * The recovery still faces risks, including an 8.6% decline in Michael Kors revenue, inventory delays that reduced quarterly revenue by about $50 million, weakness in Asia, foreign-exchange pressures and potential tariff increases. * Five stocks we like better than Capri. Capri (NYSE:CPRI - Get Free Report) issued its earnings results on Friday. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21, FiscalAI reports. The company had revenue of $809.00 million for the quarter, compared to analysts' expectations of $786.55 million. Capri had a net margin of 4.44% and a return on equity of 297.36%. The firm's quarterly revenue was down 5.5% on a year-over-year basis. During the same period in the prior year, the business earned ($0.03) EPS. Here are the key takeaways from Capri's conference call: * Capri raised its fiscal 2027 outlook, now expecting approximately $3.42 billion in revenue, $175 million in operating income, and diluted EPS of $2.20, representing 50% and 45% growth, respectively, over the prior year. * Second-quarter results exceeded expectations, with revenue of $809 million down 5.5% year over year but operating income up 55% and EPS improving to $0.42 from a $0.03 loss; gross margin expanded 230 basis points to 63.3% on stronger full-price sell-through and lower tariffs. * Michael Kors showed improving momentum as new products such as the Hamilton Soft handbag, Jennings loafer, and Piper Flex ballet flat generated strong full-price demand; management expects sequential improvement in Q3 and a return to revenue growth in Q4. * Jimmy Choo delivered a second consecutive quarter of double-digit growth, with Q2 revenue rising 11.5% to $146 million, supported by strength in accessories and footwear; the company continues to expect the brand to return to profitability in fiscal 2027. * The recovery remains exposed to execution risks, including Michael Kors inventory delays that reduced Q2 revenue by roughly $50 million, continued weakness in Asia, foreign-currency headwinds, and potentially higher tariffs in the second half. Capri stock up 15.3%. Shares of CPRI traded up $2.46 during mid-day trading on Friday, hitting $18.52. 9,812,166 shares of the company traded hands, compared to its average volume of 3,107,418. Capri has a 1-year low of $12.40 and a 1-year high of $28.26. The company has a quick ratio of 0.54, a current ratio of 1.19 and a debt-to-equity ratio of 2.27. The company has a market capitalization of $2.11 billion, a PE ratio of 14.25, a price-to-earnings-growth ratio of 0.34 and a beta of 1.35. The business has a 50 day moving average of $14.62 and a 200 day moving average of $17.91. Wall Street analyst weigh in. A number of research analysts have recently issued reports on the company. Telsey Advisory Group cut their price target on Capri from $21.00 to $18.00 and set a "market perform" rating on the stock in a report on Thursday, August 6th. Wells Fargo & Company dropped their price objective on Capri from $20.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 15th. The Goldman Sachs Group lowered their price target on shares of Capri from $21.00 to $18.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. TD Cowen started coverage on shares of Capri in a research report on Friday. They issued a "hold" rating on the stock. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Capri in a research note on Tuesday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Capri has an average rating of "Hold" and a consensus price target of $21.80. Discover more MarketBeat All Access Stock Market News Dividend Screener Tool Here are the key news stories impacting Capri this week: * Capri reported quarterly adjusted earnings of $0.42 per share, well above the $0.21 analyst consensus and sharply ahead of the $0.03 loss recorded a year earlier. Revenue of $809 million also exceeded estimates of $786.55 million. * Profitability improved substantially: net income reached $27 million versus a $34 million loss in the prior-year quarter, while gross margin expanded to 63.3% from 61.0%. Operating income also returned to positive territory. * Management raised its fiscal 2027 outlook, expecting approximately $3.42 billion in adjusted revenue. Capri also repurchased about 10.3 million shares for $150 million, supporting per-share results and signaling confidence in the recovery. * Jimmy Choo was a notable bright spot, with revenue increasing 11.5% to $146 million, partially offsetting weakness elsewhere in the portfolio. * Total revenue still declined 5.5% year over year, and Michael Kors revenue fell 8.6% to $663 million, highlighting ongoing brand and demand challenges. Capri also ended the quarter with $461 million of borrowings and $125 million in cash. Capri company profile. Capri Holdings Limited NYSE: CPRI is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands. Capri's principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances. The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Capri, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Capri wasn't on the list. While Capri currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets. Continue following MarketBeat