Capri Holdings Ltd
F:MKO
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Capri Holdings Ltd
Capri Holdings Ltd owns and manages a small group of luxury fashion brands, best known for Michael Kors, Versace, and Jimmy Choo. It designs, markets, and sells handbags, shoes, apparel, watches, and other accessories under those labels. The company sits on the brand-owner side of the fashion industry, where the value comes from name recognition, design, and control of the customer experience. Capri makes money by selling products through its own stores and websites, through wholesale partners, and in some cases through licensing arrangements. Its main customers are fashion shoppers who want premium or luxury goods, along with department stores and other retail partners that carry its brands. Because it owns the brands, Capri can set the style direction, pricing, and distribution strategy for each label. What makes the business model different is that it is not a mass-market clothing seller or a factory-focused manufacturer. Its job is to build desirable brands and turn that brand equity into sales across multiple product categories and channels. That gives Capri a role in the fashion value chain as both a creative house and a commercial platform for luxury consumer products.
Capri Holdings Ltd owns and manages a small group of luxury fashion brands, best known for Michael Kors, Versace, and Jimmy Choo. It designs, markets, and sells handbags, shoes, apparel, watches, and other accessories under those labels. The company sits on the brand-owner side of the fashion industry, where the value comes from name recognition, design, and control of the customer experience.
Capri makes money by selling products through its own stores and websites, through wholesale partners, and in some cases through licensing arrangements. Its main customers are fashion shoppers who want premium or luxury goods, along with department stores and other retail partners that carry its brands. Because it owns the brands, Capri can set the style direction, pricing, and distribution strategy for each label.
What makes the business model different is that it is not a mass-market clothing seller or a factory-focused manufacturer. Its job is to build desirable brands and turn that brand equity into sales across multiple product categories and channels. That gives Capri a role in the fashion value chain as both a creative house and a commercial platform for luxury consumer products.
Return to growth: Capri said fiscal 2027 should bring low single-digit revenue growth, about 200 basis points of gross margin expansion, and diluted EPS of approximately $2.15, up about 40% year over year.
Michael Kors reset: Management said the brand is benefiting from stronger full-price sell-throughs, better traffic, and rising AURs, but outlet and wholesale remain pressured as the company deliberately cuts promotions, third-party sales, and off-price shipments.
Jimmy Choo momentum: Jimmy Choo returned to growth in the back half of fiscal 2026 and is expected to return to profitability in fiscal 2027, helped by stronger accessories, casual footwear, and improved brand engagement.
Q4 beat on margins: Fourth-quarter revenue was $796 million, down about 4% and in line with expectations, while gross margin expanded to 64.8% and EPS returned to profit at $0.22.
Capital returns: Capri repurchased $79 million of stock in Q4 and plans to buy back another $200 million in fiscal 2027, supported by a much stronger balance sheet after the Versace sale.
Tariff impact: Management said the fiscal 2027 plan assumes an additional 10% tariff on product coming into the U.S., while the fiscal 2026 quarter also benefited from a $40 million tariff refund receivable.
