By Rob Curran

Capri Holdings swung to a fiscal third-quarter profit as the recent sale of its Versace label offset the impact of a drop in sales and rising costs.

For the quarter ended in December, the owner of brands Michael Kors and Jimmy Choo swung to a profit of $116 million, or 96 cents a share, from a loss of $547 million, or $4.61 a share, a year earlier.

The year-earlier quarter included losses from discontinued operations. Capri sold the Versace brand to Italian fashion house Prada in December.

Stripping out certain one-off items, Capri logged adjusted earnings from continuing operations of 81 cents a share, compared to the mean analyst estimate of 78 cents a share, as per FactSet.

Revenue fell 4% to $1.03 billion, edging the average analyst target of $1 billion, as per FactSet. Revenue at the Michael Kors brand fell 5.6% to $858 million. The Jimmy Choo brand, known mostly for its shoes, saw revenue increase 5% to $167 million.

Overall cost of sales rose 2% to $402 million.

For the fiscal year ending in March, Capri targeted earnings in a range between $1.30 and $1.40 a share on revenue of roughly $3.45 billion-to-$3.475 billion. The company expects to attribute $2.86 billion-to-$2.875 billion of that revenue to the Michael Kors brand.

"Looking ahead, we remain confident that these strategies will support a return to growth in fiscal 2027 as well as establish the groundwork for sustainable performance well into the future," said Chairman and Chief Executive John Idol, in a statement.

Capri was listed as one of Saks Global's largest creditors when the owner of luxury chains Saks Fifth Avenue and Neiman Marcus filed for bankruptcy in January.

Capri's shares have lagged those of rivals such as Coach brand owner Tapestry as the companies compete to reach a broad market while retaining an aura of exclusivity.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

February 03, 2026 07:16 ET (12:16 GMT)

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