Capri Holdings reported third-quarter adjusted earnings per share of $0.81, exceeding the consensus estimate of $0.77. Total revenue for the quarter reached $1.025 billion, surpassing analyst forecasts of $1.00 billion, though representing a 4.0% decline year-over-year (5.9% on a constant-currency basis). Gross margin narrowed to 60.8% from 63.1% in the prior-year period, primarily due to higher tariff expenses, while shares of the company fell more than 10% intraday despite the results beating expectations.

By brand, Michael Kors recorded revenue of $858 million, down 5.6% year-over-year, reflecting continued softness in North American wholesale channels. Jimmy Choo delivered stronger performance with revenue of $167 million, up 5.0% from the prior-year quarter, driven by expanded distribution in Europe and targeted digital marketing initiatives. The Versace business was divested during the period, with proceeds applied toward debt reduction.

The company sharply reduced net debt to $80 million at quarter-end, compared with $1.17 billion a year earlier, following the sale of its Versace brand. For fiscal 2026, Capri Holdings projects revenue of $3.45 billion to $3.475 billion, slightly below the $3.53 billion consensus, and anticipates diluted earnings per share in the range of $1.30 to $1.40 for the full year.