Jimmy Choo owner Capri trims revenue but cuts net debt sharply

Jimmy Choo proprietor Capri Holdings recorded little third-quarter sales, but net and escaped currency travel surpassed expectations arsenic the radical sharply reduced nett debt.

For the 3 months to 27 December 2025, the luxury radical said gross from continuing operations fell 4% twelvemonth connected twelvemonth to $1.025bn, oregon 5.9% astatine changeless currency.

Operating borderline improved to 4.5% from 2.4%, portion nett income from continuing activities climbed to $57m from $6m a twelvemonth earlier.

Gross nett declined to $623m, producing a borderline of 60.8%, compared with $674m and 63.1% previously.

Adjusted operating borderline stood astatine 7.7%.

Diluted net per stock from continuing operations roseate to $0.47 from $0.05, with adjusted diluted EPS expanding to $0.81 from $0.63.

Operating currency travel reached $271m, and aft $19m of superior expenditure the radical generated $252m successful escaped currency flow.

Cash and currency equivalents totalled $154m astatine 4th end, with borrowings of $234m, leaving nett indebtedness of $80m, down from $1.17bn a twelvemonth earlier.

By brand, Michael Kors posted gross of $858m, down 5.6% connected a reported ground and 7.3% successful changeless currency, portion operating income totalled $119m for a borderline of 13.9%.

Jimmy Choo delivered gross of $167m, up 5% reported and 1.9% successful changeless currency, and swung to an operating nett of $3m from a $6m loss.

Regionally, Americas income declined to $646m from $696m, EMEA roseate to $268m from $256m, and Asia slipped to $111m from $116m.

For the 9 months to 27 December 2025, Capri reported gross of $2.67bn, compared with $2.79bn successful the anterior year, portion nett income attributable to the radical reached $141m aft a $537m nonaccomplishment previously.

The institution ended the 4th with 908 retail outlets, down from 971 a twelvemonth earlier, comprising 694 Michael Kors stores and 214 Jimmy Choo locations.

Looking ahead, Capri issued adjusted guidance for fiscal 2026 from continuing operations, projecting gross of astir $3.45bn to $3.475bn.

For Michael Kors, the radical anticipates gross of astir $2.86bn to $2.87bn with an operating borderline successful the precocious azygous digits.

Jimmy Choo is forecast to make $590m to $600m successful sales, with an operating borderline successful the antagonistic debased single-digit range.

Capri said its outlook remains exposed to planetary macroeconomic conditions, imaginable tariff increases, inflation, weaker user sentiment and currency fluctuations.

Capri Holdings president and CEO John Idol said: “We were pleased with our 3rd 4th show which exceeded our expectations. Looking ahead, we stay assured that these strategies volition enactment a instrumentality to maturation successful fiscal 2027 arsenic good arsenic found the groundwork for sustainable show good into the future.”