Capri Holdings Limited (NYSE:CPRI) has released its financial results for the first quarter of fiscal 2026, ending on June 28, 2025. The company reported a 6.0% decrease in revenue on a reported basis and a 7.7% decrease in constant currency. Operating margin came in at 2.0%, with adjusted operating margin at 2.5%. Earnings per share were $0.47, while adjusted earnings per share were $0.50.
For the first quarter of fiscal 2026, total revenue stood at $797 million, representing a 6.0% decrease compared to the previous year. Gross profit was $502 million with a gross margin of 63.0%. Net income for the period was $56 million, or $0.47 per diluted share, compared to $5 million, or $0.03 per diluted share, in the prior year. Adjusted net income was $60 million, or $0.50 per diluted share, compared to $18 million, or $0.16 per diluted share, in the prior year.
Net inventory as of June 28, 2025, was $779 million, reflecting a 10.8% increase compared to the prior year. Cash flow from operating activities for the first quarter was $20 million, with capital expenditures at $13 million, resulting in free cash flow of $7 million. The company reported cash and cash equivalents totaling $129 million, with total borrowings outstanding at $1.7 billion, resulting in net debt of $1.5 billion as of June 28, 2025, compared to $1.5 billion in the previous year.
Breaking down the results by brand, Michael Kors' revenue of $635 million decreased 5.9% on a reported basis and 7.3% on a constant currency basis. The brand's gross profit was $388 million, with a gross margin of 61.1%, and operating income of $63 million, resulting in an operating margin of 9.9%.
Jimmy Choo reported revenue of $162 million, reflecting a 6.4% decrease on a reported basis and a 9.2% decrease on a constant currency basis. Gross profit for Jimmy Choo was $114 million, with a gross margin of 70.4%. Operating income was $4 million, with an operating margin of 2.5%.
Looking ahead, Capri Holdings provided guidance for fiscal year 2026, expecting total revenue of approximately $3.375 to $3.45 billion, with operating income of approximately $100 million and diluted earnings per share of approximately $1.20 to $1.40. For Michael Kors, the company anticipates total revenue of approximately $2.8 to $2.875 billion, with operating margin in the high-single-digit range. For Jimmy Choo, total revenue is expected to be approximately $565 to $575 million, with an operating margin in the negative mid-single-digit range.
In the second quarter of fiscal 2026, Capri Holdings expects total revenue of approximately $815 to $835 million, with slightly positive operating margin and diluted earnings per share of approximately $0.10 to $0.15. For Michael Kors in the second quarter, the company anticipates total revenue of approximately $685 to $700 million, with operating margin in the high-single-digit range. For Jimmy Choo, total revenue is expected to be approximately $130 to $135 million, with an operating margin in the negative mid-single-digit range.
Capri Holdings is focused on executing strategic initiatives across its two iconic brands, Michael Kors and Jimmy Choo, and remains on track to stabilize its business in the current year while establishing a solid foundation for a return to growth in fiscal 2027. Today the company's shares have moved -0.6% to a price of $18.20. For the full picture, make sure to review Capri's 8-K report.
