Capri Raises Full-Year Outlook as Jimmy Choo Grows and Michael Kors Falls

Capri Holdings raised its full-year fiscal 2027 outlook on Oct. 30, 2026, after reporting second-quarter revenue of $809 million, down 5.5% from a year earlier. The parent of Michael Kors and Jimmy Choo said the quarter ended Sept. 26, 2026, and gave its updated outlook on an adjusted basis.

The results split by brand. Michael Kors sales fell while Jimmy Choo sales grew, and Capri's shares rose about 10.4% in pre-market trading that day, according to Investing.com.

Jimmy Choo Grows as Michael Kors Declines

Michael Kors revenue fell 8.6% to $663 million, or 8.0% in constant currency, according to Capri's release distributed through Business Wire. Jimmy Choo revenue rose 11.5% to $146 million, or 12.2% in constant currency. Group revenue fell 4.9% in constant currency, because Michael Kors' decline outweighed Jimmy Choo's growth.

Jimmy Choo's operating margin was 1.4% in the quarter, compared with negative 6.9% a year earlier, the release says. MarketBeat's summary of the earnings call says Capri reiterated that Jimmy Choo will return to profitability in fiscal 2027. The same summary says management sees a long-term opportunity for $800 million in Jimmy Choo revenue at low-double-digit operating margins.

Shipment Timing and Margin Gains Shape the Quarter

About $20 million of the quarter's revenue came from wholesale shipments that arrived earlier than anticipated, according to the release. That includes about $15 million for Michael Kors and $5 million for Jimmy Choo. The release says the third-quarter outlook reflects those shipments moving out of the third quarter and into the second, so part of the quarter's revenue was pulled forward.

Investing.com reports gross margin of 63.3%, up 230 basis points, which it links to more full-price sales, a brand mix change after the Versace divestiture and lower tariff rates. The release gives adjusted diluted earnings of $0.42 a share and GAAP diluted earnings of $0.25. Investing.com puts the consensus for adjusted EPS at $0.21 and expected revenue at about $786 million, so the quarter came in above both on that comparison.

What the Raised Outlook Covers

On an adjusted basis, Capri now expects fiscal 2027 revenue of about $3.42 billion, operating income of about $175 million and diluted EPS of about $2.20. The brand split is about $2.77 billion for Michael Kors and about $650 million for Jimmy Choo. MarketBeat's call summary describes the EPS figure as 45% growth on the prior year and the operating income figure as a 50% increase.

Capri's release says the outlook was increased, but it does not give the earlier full-year figures. Investing.com cites a prior EPS consensus of about $2.12. MarketBeat's summary adds that gross margin is still assumed at about 64% and that operating expenses are roughly $2 billion.

What the Brand Split Shows

The quarter shows two luxury brands moving in different directions. Michael Kors revenue fell, while Jimmy Choo revenue grew and its operating margin turned positive.

In the release, John D. Idol, chairman and chief executive officer, said the company was encouraged by momentum at both brands. The release also says the company continues to expect total revenue to return to growth in the second half of fiscal 2027. MarketBeat's summary says sales trends improved each month as fall assortments arrived, while EMEA results reflected inventory delays and the Middle East conflict.

MarketBeat's summary also says management flagged foreign-currency headwinds for the third quarter. Third-quarter results had not been reported as of Oct. 30, 2026.