Dive Brief:
- Capri Holdings posted a fourth quarter 2026 revenue decline of 3.7% year over year to $796 million, according to a Wednesday release. Michael Kors Q4 revenue fell 5.5% year over year to $656 million, while Jimmy Choo revenue rose 5.3% to $140 million. Capri reported a net loss of $3 million in the quarter, an improvement from a $644 million loss last year.
- CEO John Idol said on a call with analysts that shoes were a main drag. “Our biggest issue inside the company actually is not the accessories, it’s our footwear," Idol said. "And we are going through a strategic repositioning of our footwear business in Michael Kors.”
- For the full year, Capri reported revenue fell 4% year over year to about $3.5 billion. The company swung into the black for the year, posting a 2026 net income of $138 million from a loss of $1.1 billion in 2025.
Dive Insight:
Following the completion of its $1.4 billion sale of Versace to Prada last year, Capri was able to reduce its debt from $1.5 billion in fiscal 2025 to $343 million in fiscal 2026. In addition, the company is making strategic moves to reposition its brands to serve a wider consumer base.
“We're leaning much more into the casual category of footwear, which is where there’s quite a bit of trend happening,” Idol said, speaking about Michael Kors, which is currently in the process of renovating about 100 stores this year.
He added that traffic and sales in the renovated stores were up, “and in those stores, quite frankly, there's a much higher percentage of new customers coming to those stores.”
In addition, the company adjusted pricing on Michael Kors products to better align with consumer trends.
“We went through a period of time where we raised the prices too far,” Idol said. “About a year and change ago, we went back to our historical pricing structure, and that's worked really well for us in full price.”
Nonetheless, Michael Kors revenue in the America’s — the brand’s largest market by far — was down 14% in Q4, which Idol attributed to the quality of its sale initiatives. Revenue was up 11% in EMEA and up 10% in Asia. Globally, Idol said wholesale revenue was down mid-single digits.
At Jimmy Choo, revenue rose about 11% in the Americas and 8% in EMEA, but fell just over 6% in Asia. Wholesale grew by mid-single digits.
“Jimmy Choo's product strategy remains focused on further developing accessories and expanding our casual footwear offerings to support sustainable long-term revenue growth and margin expansion,” Idol said. He added that the brand “is well positioned to return to revenue growth and profitability in fiscal 2027.”
While Idol said that Capri’s 2026 results “reflected our decision to reset the foundation of the Michael Kors business,” he was optimistic that “these steps have strengthened the business and position Michael Kors for improved performance in fiscal 2027 and beyond.”
Capri expects a fiscal 2027 revenue of about $3.5 billion, including about $2.9 billion for Michael Kors and about $625 million for Jimmy Choo. Raj Mehta, CFO of Michael Kors and former interim CFO at Capri, told analysts that retail revenue growth will be “partially offset by a planned decline in our Michael Kors wholesale channel as we continue to reduce off-price shipments.”
“Our guidance now assumes an additional 10% tariff on products coming into the United States,” Mehta added. “Operating expense dollars are expected to increase modestly relative to fiscal 2026. We expect full-year operating income to be approximately $190 million, a 60% increase year over year.”
In March, Mehta stepped away from his interim CFO role at Capri following the appointment of Tyler Reddien as CFO and chief operating officer.
