Capri Holdings Limited (NYSE:CPRI) reported stronger-than-expected third-quarter results on Tuesday, with both revenue and earnings coming in ahead of market expectations despite continued pressure on overall sales.
Shares in Capri Holdings Limited climbed about 5.5% following the release.
For the third quarter ended December 27, 2025, the luxury group delivered adjusted earnings of $0.81 per share, beating the analyst consensus of $0.77. Revenue totaled $1.025 billion, above forecasts of $1.0 billion, although still down 4.0% year on year, or 5.9% on a constant-currency basis.
Capri also reported a sharp improvement in its balance sheet, with net debt reduced to $80 million at the end of the quarter from $1.17 billion a year earlier, following the sale of the Versace brand.
“We were pleased with our third quarter performance which exceeded our expectations,” said John D. Idol, Chairman and CEO. “Across both Michael Kors and Jimmy Choo we continue to advance our strategic initiatives to position our iconic brands for long-term success.”
By brand, Michael Kors — the company’s largest label — saw revenue fall 5.6% to $858 million, while Jimmy Choo posted 5.0% growth, with revenue rising to $167 million. Gross margin declined to 60.8% from 63.1% a year earlier, mainly reflecting higher-than-expected tariffs.
Looking ahead, Capri issued fiscal 2026 guidance calling for revenue of $3.45 billion to $3.475 billion, slightly below the consensus estimate of $3.53 billion. The company expects diluted earnings per share of roughly $1.30 to $1.40 for the full year.
“The proceeds from the sale [of Versace] were used to significantly reduce our debt levels,” Idol added. “Looking ahead, we remain confident that these strategies will support a return to growth in fiscal 2027.”