Capri Holdings recorded a 4.1% decline in first-quarter fiscal 2027 revenues, reaching $769 million on a constant currency basis, though this outperformed internal forecasts. The company's gross margin improved by 2 percentage points year-on-year to 65%. Michael Kors, a key brand under the group, saw revenues fall 7.6% to $590 million, while Jimmy Choo posted a 9.3% increase, bringing in $179 million. The quarter ended with $114 million in cash and $338 million in debt, resulting in a net debt of $224 million — a sharp drop from last year's $1.5 billion. This marks the third quarter since Capri sold Versace to Prada Group in December 2025 for $1.4 billion.
CEO John D. Idol expressed satisfaction with progress during the earnings call, emphasizing stronger full-price sell-throughs and rising average selling prices at both brands. Jimmy Choo achieved growth across all regions and channels, driven by marketing efforts and product development. Sales in the Americas surged 26%, EMEA rose 5%, and Asia increased 3% at current rates. Campaigns featuring Chinese celebrities Wang Yibo and Bai Lu boosted visibility in Asian markets. An influencer trip to Nice involving 16 creators with over 36 million followers generated nearly 50 million impressions in key Western markets. Owned retail and wholesale channels for Jimmy Choo each grew in low-double digits sequentially. For Michael Kors, reduced markdowns and a push toward full-price sales weighed on revenue despite long-term strategic goals. Americas sales dropped 10%, EMEA fell 5%, but Asia managed a 6% gain.
Capri celebrates tighter finances and Jimmy Choo's rise while Michael Kors continues to drag overall revenue down. The brand's strategy of cutting discounts to boost perceived value has yet to translate into sales growth. With Michael Kors' performance still weakening amid these changes, the real test is whether premium positioning can revive demand without further eroding market share.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
