EarningsQ2 2027 Earnings Report
MX:CPRIN Q2 2027 EPS Results
Actual EPS$7.89
Consensus EPS$3.95
Beat/MissBeat by +$3.95
One Year Ago EPS-$0.56
MX:CPRIN Q2 2027 Revenue Results
Actual Revenue$15.20B
Expected Revenue$14.78B
Beat/MissBeat by +$421.82M
YoY Revenue Growth-5.49%
Earnings Announcement Details
QuarterQ2 2027
Date10/30/2026
TimeBefore Open
Conference CallFriday, October 30, 2026
MX:CPRIN Upcoming Earnings
Capri Holdings's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
MX:CPRIN Q2 2027 Earnings Call
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Q2 2027 Earnings Slide Deck
Q2 2027 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was clearly positive overall. Although Capri reported a 5.5% total revenue decline, Michael Kors faced inventory and channel-transition pressures, and Jimmy Choo's Asia business declined, the company reported a significant earnings beat, stronger gross margins, double-digit Jimmy Choo growth, improving Michael Kors trends, higher customer engagement, a materially improved net debt position, and raised fiscal 2027 revenue, operating income and EPS guidance.Company Guidance
Quarterly Earnings Beat Expectations
Second-quarter revenue, operating income and earnings per share were above expectations. Total company revenue was $809 million, operating income increased 55% year over year, and diluted EPS was $0.42 versus a loss of $0.03 last year.
Gross Margin and Operating Income Expansion
Gross margin increased 230 basis points to 63.3%, driven primarily by higher full-price sell-throughs, brand mix and lower tariff rates. Operating income was $31 million, with operating margin expanding 150 basis points to 3.8%.
Michael Kors Product Momentum
New fall product generated some of the strongest full-price sell-throughs seen in years. Hamilton Soft quickly became one of Michael Kors' best-selling styles, with demand exceeding expectations and teams actively chasing inventory. Jennings loafers and Piper Flex ballet flats also emerged as top-performing footwear styles.
Michael Kors Customer Engagement Growth
The Michael Kors global customer database increased 8% year over year, attracting new and younger consumers. The company also reported stronger handbag search activity, increased engagement with younger consumers and early TikTok Shop performance that exceeded expectations, generating strong engagement and sales.
Michael Kors Full-Price and Outlet Initiatives
Michael Kors reduced promotional activity by approximately 50% and had approximately 40% less markdown inventory available. Although these actions reduced revenue, they supported higher full-price sell-throughs, growth in average unit retail prices and gross margin expansion. Outlet trends improved sequentially as new styles arrived, including the new Sammy silhouette.
Michael Kors Store Renovation Progress
Capri has renovated 50 Michael Kors stores toward a goal of 300 and now has 7 Jet Set lounges globally. Renovated locations are generating higher traffic and revenues. The company expects to complete approximately 25 additional renovations this year and plans to open between 50 and 75 new Michael Kors freestanding stores next year.
Michael Kors Wholesale and Future Growth Outlook
Michael Kors wholesale revenue declined mid-single digits in the quarter but exceeded expectations partly because of a timing shift from the third quarter into the second quarter. Point-of-sale trends with wholesale partners were positive, and management expects the wholesale business to return to growth next year. The company also cited approximately 100 shop-in-shops in construction and renewed growth in its international airport and duty-free business.
Jimmy Choo Double-Digit Revenue Growth
Jimmy Choo revenue increased 11.5% on a reported basis and 12.2% in constant currency to $146 million. Own-retail sales increased mid-single digits, wholesale revenue grew strong double digits, and North American department-store point-of-sale trends delivered double-digit increases.
Jimmy Choo Geographic and Product Strength
Jimmy Choo revenue increased 24% in the Americas and 13% in EMEA. Accessories increased double digits, supported by the Bon Bon and Cinch franchises, while newer Bar and Curve franchises gained traction. Both casual and dress footwear performed well, including Margot Flat, Scarlett Kitten heel, Azia, Sacora and Faiz.
Jimmy Choo Customer Database and Brand Reach
Jimmy Choo's global consumer database increased 7% year over year. Marketing campaigns celebrating the brand's 30th anniversary, including Assertive Glamour and The Choos You Can't Live Without, were described as broadening customer reach and attracting new and younger luxury consumers.
Improved Balance Sheet and Shareholder Returns
Capri ended the quarter with $125 million of cash and $461 million of debt, resulting in net debt of $336 million versus $1.6 billion last year. The company repurchased $150 million of shares, or 10.3 million shares, reducing its share count by approximately 9%, with $721 million remaining under the authorization.
Inventory Reduction and Planned Rebuilding
Quarter-end inventory was $712 million, down 7% year over year and in line with expectations. Management expects inventory to build throughout the back half of the year to support anticipated revenue growth.
Raised Fiscal 2027 Guidance
Capri raised its fiscal 2027 outlook to approximately $3.42 billion of revenue, including $2.77 billion for Michael Kors and $650 million for Jimmy Choo. Full-year operating income is expected to be approximately $175 million, representing 50% growth over last year, while diluted EPS is expected to be $2.20, representing 45% growth.
Improved Full-Year Margin Outlook
The company continues to expect full-year gross margin of approximately 64%, compared with 62.3% last year, and operating expenses of approximately $2 billion. Michael Kors operating margin is expected to be in the low double-digit range, while Jimmy Choo is expected to return to profitability with operating margin in the low single-digit range.
Second-Half Revenue Growth Expectations
Management expects total company revenue to return to growth in the second half of fiscal 2027. Michael Kors revenue is expected to improve sequentially in the third quarter and return to growth in the fourth quarter, driven by new products, holiday assortments, increased marketing investments, store renovations and a moderating impact from quality-of-sale initiatives.
Long-Term Brand Ambitions
Management stated that Michael Kors could achieve $4 billion in revenue with operating margins in the low 20% range, while Jimmy Choo could achieve $800 million in revenue with operating margins in the low double-digit range. The company also said it is targeting substantial gross margin improvement beyond fiscal 2027 through higher full-price sell-throughs, distribution and logistics efficiencies, and manufacturing optimization.
MX:CPRIN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed