Is Capri Holdings profitable in 2026?

Capri guided FY2027 operating income of about $190 million on ~$3.525 billion revenue as of May 27, 2026. Q3 FY2026 gross margin fell from 63.1% to 60.8% on tariff pressure, and Michael Kors revenue declined 5.6% that quarter, so profitability is improving but not yet robust.

Is Michael Kors losing to Coach and Tapestry?

Yes, evidence points that way. A federal court found Tapestry and Capri have a 'deep competitive focus on each other's brands' (Nov 2024 ruling), and Michael Kors revenue fell 5.6% in Q3 FY2026 (Feb 2026) while Tapestry's Coach brand has reported stronger results and raised its outlook.

Is Jimmy Choo for sale?

No, as of March 11, 2026, CEO John Idol publicly stated Jimmy Choo is 'not for sale,' calling it a 'phenomenal asset,' despite market speculation. Jimmy Choo revenue grew 5.0% year-over-year in Q3 FY2026 (Feb 2026), reinforcing management's stance to keep it.

Could AI replace Capri Holdings' core business?

No. Capri's assets are physical: retail stores (884 as of March 2026), wholesale and licensing relationships, and brand trademarks (Michael Kors, Jimmy Choo). It uses a generative-AI shopping assistant called Shopping Muse (launched June 2024) for product discovery, but this is a conversion tool, not a substitute for the underlying goods business.

Who owns Capri Holdings?

Capri Holdings Limited is a publicly traded company on the NYSE (ticker CPRI), about 84% institutionally owned as of 2026, with no controlling parent. It owns Michael Kors and Jimmy Choo after selling Versace to Prada S.p.A. for $1.375 billion cash on December 2, 2025.

What happened to the Tapestry-Capri merger?

Tapestry agreed to buy Capri for $8.5 billion in August 2023, but a federal judge blocked it via injunction on October 24, 2024, on antitrust grounds. The companies mutually terminated the deal on November 14, 2024, with Tapestry paying Capri a $45,088,675 termination fee.

Consumer brands · United States

Capri Holdings

capriholdings.com ↗

Owner of Michael Kors and Jimmy Choo, sold Versace to Prada for $1.375B in late 2025.

Losing its protection

Assessed 23 July 2026 · Evidence as of 23 July 2026

The structural protection is eroding.

On the recordSince 23 July 2026 · Checkable from Q1 FY2027 · Every call on the record Checkpoint: Fiscal Q1 2027 results showing whether Michael Kors repricing halts the revenue decline

The call

Capri fixed its balance sheet by selling Versace, but Michael Kors keeps losing ground to Coach while the company shrinks its store footprint to compensate.

Capri Holdings owns two well-known luxury fashion brands, Michael Kors and Jimmy Choo. Michael Kors has been losing sales while its main rival Tapestry (which owns Coach) is gaining customers, which is a sign that shoppers can easily switch between similar brands in this category. The company is betting that raising prices and cutting unprofitable stores will help Michael Kors recover, but if sales keep dropping even after these changes, it could mean the brand has suffered permanent damage that cannot be fixed.

Why

AI pressure: None apparent. AI shopping tools like Michael Kors' own Shopping Muse assist sales rather than threaten the brand directly right now. Could AI do the core job? Unlikely.

Bigger players: Tapestry, Inc. (Coach). Coach keeps gaining handbag customers while Michael Kors revenue fell 5.6% in fiscal Q3 2026 and kept sliding into Q4. Could a giant copy it? Probably.

What protects it. A nearly debt free balance sheet after the Versace sale gives Capri time and cash to fund a Michael Kors turnaround.

What would change this call

Michael Kors reports comparable sales growth in FY27 Q1 or Q2. Would show the repricing turnaround is working, not just cost-cutting.
Capri announces a Jimmy Choo sale or divestiture process. Would show the two-brand portfolio strategy is being abandoned.
Capri executes on the $1 billion buyback starting FY2027. Would show balance-sheet strength is being used to support the stock.

Key numbers

Net debt fell from $1.17B to $80M (Dec 2025)
Michael Kors revenue down 5.6% in Q3 (Feb 2026)
Store count cut from 971 to 884 (Mar 2026)

Named risks

Michael Kors revenue decline persists despite repricing strategy. Severity: high
Ongoing securities-fraud litigation tied to failed Tapestry merger. Severity: medium
Tariff-driven gross margin compression, flagged $40M IEEPA receivable. Severity: medium
Store count and headcount contraction signal unresolved turnaround. Severity: medium
Market speculation on Jimmy Choo divestiture despite management denials. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Tapestry, Inc. (Coach)	losing to	Court found 'deep competitive focus' between firms (Nov 2024); Michael Kors revenue -5.6% vs Tapestry outlook raise
Prada S.p.A.	contesting	Prada acquired Versace from Capri for 1.25B euros EV, completed Dec 2, 2025, now a true-luxury rival
LVMH / Kering	contesting	Structurally cannot chase Capri's accessible-luxury price tier per company positioning, as of 2026

Questions people ask

Is Capri Holdings profitable in 2026?: Capri guided FY2027 operating income of about $190 million on ~$3.525 billion revenue as of May 27, 2026. Q3 FY2026 gross margin fell from 63.1% to 60.8% on tariff pressure, and Michael Kors revenue declined 5.6% that quarter, so profitability is improving but not yet robust.
Is Michael Kors losing to Coach and Tapestry?: Yes, evidence points that way. A federal court found Tapestry and Capri have a 'deep competitive focus on each other's brands' (Nov 2024 ruling), and Michael Kors revenue fell 5.6% in Q3 FY2026 (Feb 2026) while Tapestry's Coach brand has reported stronger results and raised its outlook.
Is Jimmy Choo for sale?: No, as of March 11, 2026, CEO John Idol publicly stated Jimmy Choo is 'not for sale,' calling it a 'phenomenal asset,' despite market speculation. Jimmy Choo revenue grew 5.0% year-over-year in Q3 FY2026 (Feb 2026), reinforcing management's stance to keep it.
Could AI replace Capri Holdings' core business?: No. Capri's assets are physical: retail stores (884 as of March 2026), wholesale and licensing relationships, and brand trademarks (Michael Kors, Jimmy Choo). It uses a generative-AI shopping assistant called Shopping Muse (launched June 2024) for product discovery, but this is a conversion tool, not a substitute for the underlying goods business.
Who owns Capri Holdings?: Capri Holdings Limited is a publicly traded company on the NYSE (ticker CPRI), about 84% institutionally owned as of 2026, with no controlling parent. It owns Michael Kors and Jimmy Choo after selling Versace to Prada S.p.A. for $1.375 billion cash on December 2, 2025.
What happened to the Tapestry-Capri merger?: Tapestry agreed to buy Capri for $8.5 billion in August 2023, but a federal judge blocked it via injunction on October 24, 2024, on antitrust grounds. The companies mutually terminated the deal on November 14, 2024, with Tapestry paying Capri a $45,088,675 termination fee.

Timeline

2026-05-27FY2026 Q4 revenue down 3.7% reported; FY2027 guidance ~$3.525B revenue, ~$190M operating income
2026-03-31Securities-fraud class action over failed Tapestry merger dismissed without prejudice
2026-03-11CEO John Idol reaffirms Jimmy Choo is 'not for sale'
2026-02-03Q3 FY2026: Michael Kors revenue -5.6%, Jimmy Choo +5.0%, gross margin fell to 60.8%
2025-12-02Versace sale to Prada completed for $1.375 billion cash
2025-04-10Prada agrees to acquire Versace from Capri at EV of 1.25 billion euros
2024-11-14Tapestry and Capri terminate merger; Tapestry pays $45,088,675 fee
2024-10-24Federal judge grants injunction blocking Tapestry-Capri merger
2024-06-10Michael Kors launches generative-AI Shopping Muse assistant

Head to head

Capri Holdings vs Lanvin Group

Revision history

23 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

PVH VF Kering