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Following the Versace sale, Capri Holdings returned to profitability amid a third consecutive year of declining revenue.
Financials
21 July, 2026
Table of contents
Capri Holdings Limited reported its Fiscal 2026 financial results on 27 May 2026, marking a transition year for the luxury group following the sale of Versace to Prada SPA. The company recorded a 4,1% decline in annual revenue, showing a three-year downward sales trend, but returned to positive operating and net income after reporting losses in the previous two fiscal years. The results displays a business that has largely stabilised in an operational way, even though the sustainable revenue growth remains a continuing challenge.
Following the completion of the Versace sale, Capri Holdings Limited operates as a more focused luxury group centred on Michael Kors and Jimmy Choo. Alongside tighter cost management, lower inventory levels and a rigid balance sheet, the Group prepared for its next phase of transformation.
| Metric (US$ million) | FY2026 | FY2025 | FY2024 | Change vs FY2024 |
|---|---|---|---|---|
| Revenue | 3.474 (-4,1%) | 3.621 (-30,0%) | 5.170 | -32,8% |
| Gross Profit | 2.163 (-3,9%) | 2.251 (-32,6%) | 3.339 | -35,2% |
| Operating Income | 23 (Return to profit) | -26 (↓110,8%) | -241 | +US$264 million |
| Net Income | 138 (Return to profit) | -1.179 (↓414,8%) | -229 | +US$367 million |
Capri Holdings Limited reported a 4,1% year-on-year decline in revenue during FY2026. Revenue reached $3,474 billion, showing a third consecutive year of lower sales due to softer consumer demand, particularly in North America. Gross profit decreased by 3,9% to $2,163 billion, showing disciplined inventory management, improved merchandise margins and a higher proportion of full-price sales. However, the overall revenue remained below FY2024 levels.
The most notable improvement came from earnings. Capri Holdings Limited recorded operating income of $23 million, while net income reached $138 million after a significant loss in the previous fiscal year. The improvement shows tighter cost management, operational efficiencies and the absence of the exceptional impairment charges listed in earlier periods, along with the simplification in the business due to the Versace divestment.
| Brand (US$ million) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Michael Kors | 2.874 (-4,7%) | 3.016 (-14,4%) | 3.522 |
| Jimmy Choo | 600 (-0,8%) | 605 (-2,9%) | 618 |
Michael Kors remained Capri Holdings Limited's largest business, contributing around 83% of the Group's total revenue in FY2026. Revenue declined 4,7% year-on-year to US$2,874 billion, expanding the brand's downward trajectory with a 14,4% decline in FY2025. Even though the rate of decline is moderate, annual revenue remained below FY2024 earnings.
Regionally, the Americas remained Michael Kors' largest market but continued to experience weaker consumer spending and a highly promotional retail environment. By contrast, EMEA delivered growth, supported by international tourism and resilient luxury demand. Asia remained stable despite uneven market conditions. The results underscore Michael Kors' continued dependence on North America, with Europe being the strongest source of regional performance.
Jimmy Choo recorded revenue of $600 million in FY2026, representing a modest 0,8% year-on-year decline compared to a 2,9% decline in FY2025. Jimmy Choo was Capri Holdings Limited's most adaptable brand with stable demand in the luxury footwear and accessories segment.
From a regional perspective, EMEA remained Jimmy Choo's strongest-performing market due to international tourism and resilient demand for luxury footwear. The Americas continued to provide a stable revenue base. Asia recorded a slight decline with uneven consumer demand across key luxury markets.
| Region (US$ million) | FY2026 | FY2025 | FY2024 |
|---|---|---|---|
| Americas | 2.029 (-8,6%) | 2.219 (-32,4%) | 3.282 |
| EMEA | 1.003 (+5,4%) | 952 (-17,5%) | 1.154 |
| Asia | 442 (-1,8%) | 450 (-38,7%) | 734 |
| Total Revenue | 3.474 (-4,1%) | 3.621 (-30,0%) | 5.170 |
The Americas remained the Group's largest market, contributing approximately 58% of total revenue, but also recorded the sharpest decline with sales falling 8,6% to $2,029 billion. The region continued to face a more promotional retail environment and softer demand within the accessible luxury segment.
In contrast, EMEA was the only region to deliver positive growth during FY2026, with revenue increasing 5,4% to $1,003 billion. The improvement shows the adaptability of European luxury demand with international tourism and healthy spending across key shopping destinations.
Asia remained stable, with revenue decreasing by 1,8% to $442 million. Although demand remained uneven across several Asian luxury markets, the decline was much smaller than in previous years. This suggests that the region is beginning to stabilise, although revenue remains below FY2024 revenue.
Capri Holdings Limited announced an agreement to sell Versace to Prada for around $1,38 billion (€1,25 billion). The move allowed Capri to prioritise long-term brand investment and improve financial flexibility. The transaction officially closed in December 2025, after which Versace was reported as a discontinued operation.
Throughout FY2026, Capri Holdings Limited intensified efforts to reposition Michael Kors by evolving product assortments, reducing promotional activity and strengthening full-price selling. The brand broadened its digital distribution strategy, including the launch of an official Amazon storefront, while introducing more accessible price points in selected handbag categories to reconnect with aspirational luxury consumers.
Capri Holdings Limited continued its multi-year transformation programme by expanding investments in digital infrastructure, data analytics, omnichannel capabilities and technology-enabled merchandising. Management highlighted these initiatives as a crucial part in improving customer engagement, inventory planning, merchandising decisions and operational efficiency across Michael Kors and Jimmy Choo.
Capri continued rationalising its retail footprint to improve store productivity and profitability. The Group ended FY2026 with 884 directly operated stores, down from 930 a year earlier. This reflects strategy focused on optimising existing locations and enhancing the customer experience, instead of increasing store count.
Capri Holdings Limited's Board of Directors approved a new three-year $1 billion share repurchase programme. During the fourth quarter of FY2026, the company repurchased approximately 4 million ordinary shares for $79 million, with substantial authorisation remaining for future buybacks.
Following the completion of the Versace sale, Capri Holdings Limited used a significant portion of the proceeds to reduce debt, lowering net debt from $1,6 billion before the transaction to around $80 million. The strengthened balance sheet provides greater flexibility to invest behind Michael Kors and Jimmy Choo as well as supports future shareholder returns.
Capri Holdings Limited's FY2026 results reflect a business that has made progress in improving profitability but has yet to restore sustainable revenue growth. Even though annual revenue declined for a third consecutive year, the pace of decline moderated. The Group returned to positive operating and net income after facing losses in the previous two fiscal years. The completion of the Versace divestment, together with tighter cost management, lower inventory levels and a stronger balance sheet, has reshaped Capri into a narrow organisation focused on Michael Kors and Jimmy Choo.
Moving forward, the next phase of Capri Holdings Limited's transformation will depend on translating these operational improvements into consistent scaling. Management expects a return to low-single-digit revenue growth in FY2027, supported by continued investment in product innovation, digital capabilities and consumer engagement. However, with Michael Kors still generating lower revenue than in FY2024 and North America remaining the Group's weakest-performing region, restoring demand across its core business will not be easy.
Cover Image: Les Facons official website