Finance
Michael Kors parent Capri hikes annual forecasts on Jimmy Choo strength
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Capri Holdings raises its fiscal year 2026 revenue forecast to $3.45B-$3.48B, citing strong demand for its Jimmy Choo and Michael Kors brands.
Feb 3 (Reuters) - Capri Holdings on Tuesday raised its annual revenue and profit forecast, banking on steady demand for apparel and handbags across its Jimmy Choo and Michael Kors brands as it engineers a turnaround.
The company has been working to stabilize its core portfolio after divesting Versace to Prada late last year, as it contends with margin pressures from tariffs and uneven demand across regions.
Capri has also been working to nudge its full‑price levels slightly lower to widen its customer base, while pulling back inventory from off‑price channels, to protect its margins.
In the third quarter, Jimmy Choo logged a 5% jump, but the larger Michael Kors label remained under pressure, with sales declining 5.6%.
The company had warned of an unmitigated tariff impact of about $85 million in fiscal 2026 as it relies on imports from Vietnam and China, countries that face steep duties from the U.S.
The retailer logged a 70-basis-point growth in underlying margins in the third quarter, offset by higher-than-anticipated tariffs.
Capri now expects fiscal year 2026 revenue in the range of $3.45 billion to $3.48 billion, compared with its prior forecast of $3.38 billion to $3.45 billion.
It projects annual earnings per share in the range of $1.30 to $1.40, with the midpoint slightly below estimates of $1.38, according to data compiled by LSEG.
Shares of the company reversed gains, trading marginally lower before the bell.
Capri reported a 4% drop in revenue to $1.03 billion in the quarter ended December 27, slightly ahead of analysts' estimates of $1 billion.
The company's earnings per share for the quarter came in at 81 cents, beating estimates of 77 cents.
(Reporting by Angela Christy in Bengaluru; Editing by Shinjini Ganguli and Leroy Leo)
Annual revenue is the total amount of money generated by a company from its business activities during a fiscal year, before any expenses are deducted.
Handbags are fashion accessories used to carry personal items. They come in various styles, sizes, and materials, often serving both functional and aesthetic purposes.
Market demand refers to the total quantity of a product or service that consumers are willing and able to purchase at various prices during a specific time period.
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