Capri Holdings posted weaker first-quarter results for fiscal 2027 (FY27) as slowing luxury spending and continued economic uncertainty impacted demand across its portfolio, which includes Michael Kors, Versace, and Jimmy Choo. The company also revised its full-year guidance downward, citing softer consumer sentiment, supply chain challenges, and regional market pressures.
The latest Capri Holdings Q1 FY27 results reflect ongoing headwinds facing the global luxury industry, with lower sales and profitability across most brands despite continued investment in long-term growth initiatives.
Revenue and Earnings Decline
For the quarter ended June 29, 2026, Capri Holdings reported revenue of $1.19 billion, a 6% decline from $1.27 billion recorded in the corresponding period last year.
Net income fell to $59 million, compared with $81 million in the first quarter of FY26, while diluted earnings per share (EPS) decreased to $0.42 from $0.58 a year earlier.
Commenting on the performance, John D. Idol, Chairman and Chief Executive Officer of Capri Holdings, said:
“Our first quarter results reflect the ongoing challenges in the luxury sector, with softer demand across key markets. We remain focused on executing our strategic initiatives and managing inventory levels to position our brands for long-term growth.”
Margins Narrow Amid Promotional Activity
Gross profit for the quarter totalled $708 million, down from $763 million in the prior-year period.
The company’s gross margin declined to 59.5%, compared with 60.1% a year earlier. Capri Holdings attributed the contraction primarily to increased promotional activity and the adverse impact of foreign exchange movements.
Operating income also weakened, falling to $110 million from $142 million in the same quarter last year. Consequently, the operating margin narrowed to 9.2%, compared with 11.2% in Q1 FY26.
The company said lower sales volumes reduced operating leverage, while continued investment in marketing and brand-building initiatives also weighed on profitability.
Brand Performance Remains Under Pressure
The Capri Holdings Q1 FY27 results showed sales declines across all three of its luxury brands.
Michael Kors, the group’s largest business, generated $784 million in revenue, representing a 7% year-on-year decline.
Versace recorded revenue of $252 million, down 5%, while Jimmy Choo reported $154 million, reflecting a 3% decrease compared with the previous year.
Regional Sales Mixed
Geographically, the Americas experienced the sharpest decline, with revenue falling 8% to $670 million.
Sales across the Europe, Middle East and Africa (EMEA) region declined 4% to $355 million, while Asia remained relatively stable, generating $165 million, broadly in line with the previous year.
Company Lowers FY27 Forecast
Given the challenging operating environment, Capri Holdings reduced its expectations for the remainder of the fiscal year.
The company now projects FY27 revenue of approximately $3.4 billion, while diluted earnings per share are expected to be around $2.15.
Management cited several factors behind the revised outlook, including inventory delays affecting Michael Kors, weaker consumer demand across EMEA amid the ongoing Middle East conflict, and continued pressure from foreign exchange fluctuations.
For the second quarter of FY27, Capri Holdings expects revenue of approximately $780 million and EPS of about $0.20. Management also anticipates continued margin pressure at both Michael Kors and Jimmy Choo during the quarter.
Despite near-term challenges, the company said it remains committed to strengthening its luxury brands, enhancing customer engagement, and creating sustainable long-term value for shareholders through disciplined inventory management, strategic investments, and brand development initiatives.
