Aug 7, 11:53 AM

Capri Holdings Surges on Profit Beat and Higher Sales Outlook

Capri Holdings, the owner of Michael Kors and Jimmy Choo, delivered first-quarter fiscal 2026 results that beat analysts’ expectations and raised its revenue projections, pushing the stock up roughly 12% on Wednesday. Net income came in at $0.50 per share on revenue of $797 million, ahead of Wall Street estimates of $0.13 and $793 million, respectively. The top-line decline narrowed to 6% from 14% a year earlier, with sales at Michael Kors easing 5.9% as demand for handbags and footwear improved. Chief Executive Officer John Idol said Capri’s turnaround—highlighted by the sale of Versace to Prada, workforce reductions and store upgrades—is gaining traction. The company now expects recently imposed U.S. tariffs to add about $85 million to costs this fiscal year, up from an earlier $60 million estimate, and plans to blunt the impact through sourcing changes and selective price increases. For the second quarter, Capri forecasts revenue of $815 million to $835 million, slightly above the $819 million consensus compiled by LSEG. The upbeat guidance contrasts with a profit warning from Crocs, whose shares tumbled more than 20%, while echoing stronger-than-expected results from Ralph Lauren, which raised its full-year outlook after reporting a 30% sales jump in China.