Capri Holdings Limited (NYSE:CPRI) has released its financial results for the second quarter of fiscal 2026, which ended on September 27, 2025.
In the second quarter of fiscal 2026, the company reported that revenue decreased 2.5% on a reported basis and 4.2% in constant currency. The operating margin was (1.4)%, while the adjusted operating margin was 2.3%. The company reported a loss per share of $(0.28), but the adjusted loss per share was $(0.03) reflecting a higher than anticipated tax rate.
Total revenue for the quarter was $856 million, a decrease of 2.5% compared to the previous year. The gross margin was 61.0%, down from 62.3% in the prior year, with tariffs negatively impacting the gross margin rate by approximately 130 basis points.
The net loss for the quarter was $34 million, or $(0.28) per diluted share, compared to net income of $42 million, or $0.37 per diluted share, in the prior year. Adjusted net loss was $4 million, or $(0.03) per diluted share, compared to $76 million, or $0.64 per diluted share, in the prior year.
The company's net inventory as of September 27, 2025, was $766 million, a 2.8% decrease compared to the prior year. Cash and cash equivalents totaled $120 million, while total borrowings outstanding were $1.76 billion, resulting in net debt of $1.64 billion as of September 27, 2025, versus $1.58 billion last year.
Michael Kors, a brand under Capri Holdings, reported revenue of $725 million, a decrease of 1.8% on a reported basis and 3.3% on a constant currency basis. The brand's gross profit was $430 million, and the gross margin was 59.3%. Operating income for Michael Kors was $73 million, with an operating margin of 10.1%.
Jimmy Choo, another brand under Capri Holdings, reported revenue of $131 million, a decrease of 6.4% on a reported basis and 9.3% on a constant currency basis. The brand's gross profit was $92 million, and the gross margin was 70.2%. However, the brand reported an operating loss of $9 million, with an operating margin of (6.9%).
Looking ahead, the company expects retail trends to improve in the second half of fiscal 2026, positioning them to return to growth in fiscal 2027. They also remain optimistic about the growth potential of both Michael Kors and Jimmy Choo in the longer term.
In addition, the company has announced a $1 billion share repurchase program, which they expect to begin implementing in fiscal 2027.
For the full fiscal year 2026, the company expects total revenue of approximately $3.375 to $3.45 billion, with an operating income of approximately $100 million.
These results and expectations provide insight into the financial performance and future outlook of Capri Holdings Limited as it continues to navigate the fashion luxury market. Today the company's shares have moved -0.14% to a price of $20.72. For more information, read the company's full 8-K submission here.
