The company has been working to stabilise 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 US. 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.
–Reuters–
