Capri Holdings — parent company of Jimmy Choo and Michael Kors — reported a 4.1% decrease in revenues, on a constant currency basis, to $769 million in the first quarter of fiscal 2027, beating internal expectations. Gross margin climbed 2% year-on-year to 65%.
Michael Kors remained the weaker link, with revenues down 7.6% year-on-year to $590 million on a constant basis. Jimmy Choo revenues increased 9.3% to $179 million.
Capri ended the quarter with a cash balance of $114 million and a debt of $338 million, culminating in a net debt of $224 million, a substantial reduction from last year’s $1.5 billion. The results mark the third quarter since the company sold Versace to Prada Group in December 2025 for $1.4 billion.
On the Wednesday earnings call, CEO John D. Idol said the company was pleased with the results, indicating the development of a stronger and more profitable business. “We continue on our journey to, first and foremost, look at the quality of sales in both Jimmy Choo and at Michael Kors,” said Idol. “I think we’re making very strong strides in that area. Our full-price sell-throughs and AURs [average selling price of an item] at both companies were up, and when I look at the health of the sale to the customer, it’s getting better each quarter.”
Jimmy Choo witnessed growth across categories, regions, and channels, which the company attributed to its marketing and product developments. Sales in the Americas were up 26%, the EMEA region (Europe, Middle East and North Africa) was up 5%, and Asia was up 3% year-on-year at current rates. Sequentially, sales via Jimmy Choo’s owned retail channels and wholesale accounts each increased low-double digits, with growth across all regions for the former. Campaigns with brand ambassadors including Chinese actor and singer Wang Yibo and actress Bai Lu delivered strong engagement in key markets and increased brand visibility in Asia. The brand’s influencer trip to Nice — hosting 16 creators with a combined following of over 36 million people — delivered almost 50 million impressions in core markets such as the US, the UK, and Germany.
For Michael Kors, a reduction in markdowns and momentum in full-price selling — although a long-term aim to improve the brand’s foundation — negatively impacted revenues. Sales in the Americas fell 10%, while in EMEA, sales fell 5% at current rates. Nonetheless, Asia revenues grew 6%.
Per Capri, strategic initiatives across the group supported consumer engagement in Q1, such as optimized brand storytelling and product innovation, designed to enhance desirability and emotional connection with new and existing customers. Improvements were also made in the client experience — including store investments — and cash flow, the company added. Michael Kors, for example, developed its jet-set USP, with two new flagship stores in Beijing and Kuala Lumpur, each complete with experiential lounges conceived to improve dwell time and enrich engagement.
Looking ahead, the company anticipates revenues of around $3.4 billion for fiscal 2027 — a revised expectation that accounts for lower-than-expected inventory at Michael Kors in Q2, headwinds in EMEA, due to the ongoing Middle East conflict and reduced European tourism, and shifting currency rates. The company forecasts that Michael Kors will return to growth in the back half of the year, while Jimmy Choo returns to profitability.
“We delivered meaningful progress in the first quarter, improving the quality of our sales, expanding gross margin, operating margin, and earnings per share, and continuing our share repurchase program,” said CFO Tyler Reddien on the call. “While near-term inventory delays are impacting our second-quarter outlook, we expect revenue to return to growth in the second half.”
