Capri Holdings Q4 Revenue Falls 4% as EPS Rises and Guides 40% EPS Growth
CPRI•Capri Holdings posted Q4 revenue of $796 million, down 4% year-over-year, while gross margin expanded 490 basis points to 64.8% and EPS turned positive at $0.22. The company repurchased $79 million of shares and guided FY27 revenue to $3.525 billion with EPS expected at $2.15 (+40%).
1. Q4 2026 Financial Results
Capri Holdings reported Q4 revenue of $796 million, a 4% year-over-year decline, while gross margin expanded 490 basis points to 64.8% and operating margin grew 170 basis points. EPS turned positive at $0.22, net income reached $27 million, cash stood at $135 million against $357 million of debt, and inventory declined 17% to $581 million.
2. Brand Performance
Michael Kors revenue fell 5.5% as quality of sale initiatives and reduced promotional activity weighed on full-price and outlet channels. Jimmy Choo revenue climbed 5.3% driven by stronger brand desirability and consumer engagement, though its operating margin remained negative 14.3% due to currency headwinds and higher SG&A expenses.
3. Fiscal 2027 Guidance & Capital Allocation
The company expects fiscal 2027 revenue to rise at a low single-digit rate to approximately $3.525 billion and EPS to reach about $2.15, a 40% increase year-on-year. Management repurchased $79 million of shares in the fourth quarter and forecasts a 200-basis-point gross margin improvement and a 60% operating margin uplift for Michael Kors by October.
