Capri Holdings Exceeds Quarterly Revenue Expectations
Capri Holdings reported stronger-than-expected revenue for the second quarter, driven by increased demand for its brands, including Michael Kors. The company announced a $1 billion share repurchase program, which boosted its shares by about 4 percent in premarket trading.
Financial Results
- Quarterly revenue reached $856 million, surpassing the estimated $825.7 million.
- An adjusted quarterly loss of 3 cents per share was reported, versus Wall Street's projection of a 13-cent profit per share.
Impact of Tariffs
Capri Holdings anticipates that tariffs on products imported into the U.S. will raise costs by approximately $85 million in fiscal 2026. Most products sold in the U.S. are imported from Vietnam, Cambodia, Indonesia, Bangladesh, and China.
Leadership and Market Strategy
The company, owner of Michael Kors and Jimmy Choo, highlighted progress in reducing debt and indicated selective price increases on Michael Kors handbags to counteract tariff impacts.
"Shares jumped after the Michael Kors and Jimmy Choo owner reported stronger sales and said it was making progress on lowering debt levels."
Designer Profile
A Hong Kong-born, London-based designer featured in an interview with BoF founder Imran Amed discussed his journey from Hong Kong to Paris Couture Week and his approach to balancing creativity with commercial success.
"He’s building a client-first business that protects creativity while staying commercially viable."
Weekly insights explore creativity and business within the luxury goods sector.
Author's summary: Capri Holdings exceeded revenue forecasts and launched a billion-dollar buyback, navigating tariff challenges and focusing on brand growth and debt reduction.