Capri Holdings Limited (NYSE:CPRI) reported fourth-quarter results on Wednesday that came in ahead of analyst expectations, helping lift the company’s shares by 2.7% as investors responded positively to early signs that the luxury group’s turnaround strategy is gaining momentum.
The fashion company posted adjusted earnings per share of $0.22 for the quarter, surpassing analyst forecasts of $0.11. Revenue totaled $796 million, slightly ahead of consensus expectations of $795.14 million, although still down 3.7% from $827 million recorded in the same quarter last year. On a constant-currency basis, the decline narrowed to 7%.
Fourth-quarter performance was supported by a $40 million benefit linked to an estimated refund of tariffs previously paid under the International Emergency Economic Powers Act. The refund followed a February 2026 ruling by the U.S. Supreme Court declaring those tariffs unlawful. The benefit reduced the company’s cost of goods sold and helped increase gross margin to 64.8%, compared with 59.9% a year earlier.
“We were encouraged by the progress we made executing against the strategic initiatives introduced last year to maximize the full potential of our two iconic fashion luxury houses, Michael Kors and Jimmy Choo,” said Chairman and CEO John D. Idol. “Early validation of our strategic initiatives and improving trends across both brands reinforce our confidence in their return to revenue and earnings growth.”
For fiscal 2027, Capri issued guidance projecting adjusted earnings per share of approximately $2.15, above analyst consensus estimates of $1.87.
The company also forecast annual revenue of around $3.525 billion, exceeding consensus expectations of $3.48 billion and implying low single-digit growth for the year.
Within the group’s brand portfolio, Michael Kors generated quarterly revenue of $656 million, representing a 5.5% decline year-over-year. Meanwhile, Jimmy Choo posted revenue growth of 5.3%, reaching $140 million during the quarter.
Capri also continued to strengthen its balance sheet and inventory position, reducing net inventory levels by 17% year-over-year to $581 million. The company generated $134 million in free cash flow during the full fiscal year.
Looking ahead to the first quarter of fiscal 2027, Capri said it expects adjusted earnings per share of approximately $0.40 alongside revenue of around $750 million.