Capri reported a 4% decline in total revenue to $1.025 billion, reflecting continued transition efforts at both Michael Kors and Jimmy Choo. The company is executing strategic initiatives including store renovations, disciplined expense management, and targeted pricing actions, with management confident in ability to return to growth in fiscal 2027.
Cyborg Score Rationale
Q3 FY2026 saw revenue down 4.0% with adjusted operating margin of 7.7% and adjusted EPS of $0.81, with net debt reduced to $80 million after Versace sale completion. The company faces headwinds from declining revenues but is strengthening its financial position and positioning for turnaround.
Top Insights
Successfully completed Versace sale in December 2025, reducing debt and providing capital for brand investment
Share repurchase program of $1 billion authorized to begin in fiscal 2027, signaling management confidence
Increased digital marketing traction with 300% growth in impressions for Michael Kors and exposure to 150 million consumers for Jimmy Choo
FY2026 EPS guidance set at $1.30-$1.40, suggesting profitability recovery from prior year declines
Named Competitors
Gucci — Luxury fashion and leather goods
Coach — Accessible luxury handbags and accessories
Dior — Ultra-luxury fashion and accessories
Recent Developments
(December 2025) Completed sale of Versace business to Prada, reducing net debt to $80 million
(February 2026) Q3 FY2026 results exceeded expectations with adjusted operating margin of 7.7% and EPS of $0.81
(February 2026) Management forecasts return to growth in fiscal 2027 with improved margins and disciplined expense management
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