Abstract

Capri Holdings Ltd will report fiscal third-quarter results on February 03, 2026 Pre-Market, with investors watching guidance and margins after recent volatility in profitability.

Market Forecast

Consensus tracking points to this quarter’s revenue estimate at USD 1.00 billion, an adjusted EPS estimate at USD 0.77, and EBIT near USD 78.60 million, with year-over-year forecasts indicating revenue down 20.14%, adjusted EPS up 16.39%, and EBIT down 10.71%; margin commentary implies stabilization after restructuring actions, but the net profit margin may remain pressured. Capri Holdings Ltd’s main business is expected to be driven by the Michael Kors brand, while the most promising near-term segment is expected to be Michael Kors accessories, with demand improving sequentially; the Jimmy Choo brand is likely to show steadier trends but lower scale.

Last Quarter Review

Capri Holdings Ltd’s previous quarter delivered USD 856.00 million in revenue, a gross profit margin of 60.98%, GAAP net profit attributable to the parent company at USD -28.00 million, a net profit margin of -3.27%, and adjusted EPS at USD -0.03, with year-over-year revenue declining by 20.67% and adjusted EPS falling sharply. The quarter’s key highlight was the outperformance on revenue versus estimates alongside disciplined cost control that lifted EBIT above consensus to USD 20.00 million despite negative GAAP earnings. Main business highlights showed Michael Kors at USD 725.00 million and Jimmy Choo at USD 131.00 million, underscoring brand concentration at Michael Kors amid ongoing demand normalization.

Current Quarter Outlook

Michael Kors: Core Performance and Margin Trajectory

The Michael Kors brand remains the core revenue engine, and its directional performance will anchor investor reaction this quarter. Sequential demand recovery is crucial for confirming that promotional intensity and inventory actions are moderating, which would help protect gross margin even against a down year-over-year revenue base. A leaner assortment and tighter wholesale shipments are expected to sustain a gross profit margin near prior levels, though leverage on fixed costs will be limited if top-line remains down around double digits. Pricing discipline and mix toward higher-margin accessories should support adjusted EPS resilience, aligning with the forecast of EPS at USD 0.77, while EBIT is likely to reflect narrower SG&A growth relative to sales. Management’s commentary on wholesale sell-through and retail traffic will be critical for gauging whether Michael Kors can convert stabilization into durable margin expansion in the coming quarters.

Jimmy Choo and Portfolio Balance

Jimmy Choo contributes a smaller revenue base at USD 131.00 million last quarter, but its steadier luxury footwear and accessories demand can cushion consolidated volatility. The brand’s exposure to occasion-based and fashion footwear has historically shown sensitivity to macro discretionary cycles, yet higher-income cohorts have remained engaged, limiting downside. In the quarter under review, watch for inventory cadence and full-price sell-through trends to validate margin improvement potential if discounting recedes. With Capri Holdings Ltd projecting consolidated EPS growth year-over-year and aiming to preserve gross margin, incremental contributions from Jimmy Choo’s premium price points can enhance blended margins even when volumes are subdued. A measured expansion in direct-to-consumer, combined with tight wholesale distribution, should help maintain brand equity and prevent margin dilution.

Stock Price Drivers: EPS Delivery, Gross Margin Stability, and Guidance Quality

Three factors are likely to drive the share price reaction: the precision of EPS delivery versus the USD 0.77 estimate, the degree of gross margin stability around the recent 60.98% level, and the quality of guidance for the next fiscal quarter. If adjusted EPS exceeds expectations alongside evidence that promotional activity is easing, the market may reward the stock despite revenue contraction. Conversely, any indication that net profit margin remains materially negative, or that EBIT deteriorates more than the forecasted 10.71% year-over-year decline, could refocus attention on structural demand challenges. Guidance on inventory and wholesale normalization, plus clarity on SG&A trajectory, will serve as a litmus test for whether margin improvements can be sustained; investors will also parse commentary related to ongoing strategic initiatives aimed at brand elevation and omni-channel execution. Stabilization in the Michael Kors segment and resilient trends at Jimmy Choo would underpin confidence in a gradual earnings recovery path.

Analyst Opinions

The majority of recent institutional commentary leans cautiously optimistic, emphasizing potential EPS stabilization amid disciplined cost management and a normalized promotional backdrop. Several well-followed sell-side voices highlight that a cleaner inventory position and targeted assortments could support margins and permit Capri Holdings Ltd to meet or slightly exceed the USD 0.77 EPS estimate, even with revenue down approximately 20.14% year-over-year. Analysts also point to improving sequential dynamics in core accessories within Michael Kors, indicating that EBIT near USD 78.60 million is achievable if SG&A is contained and wholesale remains rational. A minority of views remain concerned about persistent top-line headwinds and the risk that net profit margin hovers below breakeven, but the prevailing stance expects guidance to show continued progress on margin integrity and careful channel management. Overall, the consensus tone suggests the company is positioned to deliver a credible quarter on profitability metrics while remaining vigilant on demand recovery.