Capri Holdings Ltd's stock fell sharply by 5.10% during intraday trading on Tuesday, reversing earlier gains. The luxury fashion group, which owns the Michael Kors and Jimmy Choo brands, had initially seen its shares rise in pre-market trading following the release of its third-quarter fiscal 2026 results.

The company reported a swing to a quarterly profit of $116 million, largely due to the sale of its Versace label. Adjusted earnings per share of $0.81 exceeded analyst expectations of $0.77. However, total revenue declined by 4% to $1.03 billion, with the key Michael Kors brand experiencing a 5.6% drop in sales attributed to higher tariffs and currency fluctuations. While the Jimmy Choo brand saw a 5% revenue increase, the overall top-line contraction appears to have dampened investor enthusiasm after the initial positive reaction to the profit beat and debt reduction from the Versace sale proceeds.

The company maintained its fiscal year 2026 guidance, projecting revenue between $3.45 billion and $3.475 billion and adjusted earnings per share in the range of $1.30 to $1.40. Analyst firm Telsey Advisory Group maintained its "Market Perform" rating on the stock, reflecting a cautious outlook amid the mixed quarterly performance and challenging retail environment for the Michael Kors brand.