Oct 30, 2026 earnings call — Michael Kors and Jimmy Choo momentum and guidance
Capri raised fiscal 2027 guidance to approximately $3.42 billion revenue and diluted earnings per share of $2.20.
Revenue $0.8B (est $0.8B) · EPS $0.42 (est $0.21)
Key quotes
"New fall product introductions are generating some of the strongest full price sell-throughs we have seen in years, underscoring the strength of our innovative product designs and the positive consumer response to our collections."
"Revenue was impacted by inventory delays discussed last quarter, which constrained product availability as well as our actions to reduce markdown inventory by roughly 40% and promotional days by about 50%."
"Based on our second quarter results and our expectations for the balance of the year, we now anticipate fiscal 2027 revenue of approximately $3.42 billion despite increasing foreign currency headwinds."
Analyst Q&A 6
Why Michael Kors sales improved month-to-month
Q (Matthew Boss · JPMorgan): He asked what drove the sequential month-over-month improvement at Michael Kors and for exit trends in September and October that support confidence for positive back-half revenue while reducing promotions.
A: Management said the improvement came from exciting new, on-trend product and stronger footwear and accessories full-price sell-throughs, with demand chasing inventory. They reduced markdowns and promotions by 50% and are well on the way to about 75% new product in the outlet channel, though they ran with $50 million less inventory than planned and have supplemented shipments with air to fix delays from Asia.
"First, we continue to flow exciting new fashion on-trend product." — John Idol (CEO·CHAIR)
Outlet channel trends and restocking speed
Q (Brooke Roach · Goldman Sachs): She asked whether the sequential improvement also showed up in Michael Kors Americas outlet and how quickly they can restock high-performing items like the Hamilton Slouch.
A: They said outlet stores saw a slightly stronger acceleration and were receiving a bigger percentage of newness than full-price stores. On Hamilton and other hit items, sell-throughs surprised them, the trend began in Asia and rippled globally, and they are moving as fast as possible to restock but did not give a specific timing.
"In terms of Michael Kors outlet, interestingly enough, we actually saw a slightly stronger acceleration in the outlet stores." — John Idol (CEO·CHAIR)
Wholesale size and gross margin outlook
Q (Simeon Siegel · Guggenheim Partners): He asked what the right size for Michael Kors wholesale should be and how to think about sell-in as POS improves; and asked Tyler about drivers for gross margin in the back half and longer term.
A: They said wholesale should be in the "20% range, 25% range" for the brands and that wholesale is returning to growth with about 100 shop-in-shops being completed. Tyler said gross margin will expand in the second half driven by higher full-price sell-throughs and higher AURs, but expansion will be a bit less than the first half because they are anniversarying quality-sales benefits, facing somewhat higher tariff rates, and will anniversary a tariff refund in Q4.
"And I would say, Simeon, for whether it's Michael Kors or Jimmy Choo, somewhere in the 20% range, 25% range." — John Idol (CEO·CHAIR)
Fashion shift and who is buying
Q (Adrienne Yih-Tennant · Barclays): She asked how the broader fashion shift toward more formalized footwear and apparel affects accessories at both brands and whether reengaged customers are new or lapsed — any demo details.
A: They said the fashion shift benefits both Jimmy Choo and Michael Kors; Jimmy Choo is growing across 4 platforms and dress footwear is back, and Michael Kors is shifting away from sneakers toward more dress footwear. They said they are attracting new younger customers — millennials, younger millennials and some Gen Z — and their TikTok Shop is doing almost 4x what they expected.
"And then lastly, on the customer, we're seeing -- again, it's very similar, Jimmy Choo and Michael Kors, we're attracting new younger customers." — John Idol (CEO·CHAIR)
How to keep raising AUR and margins
Q (Rakesh Patel · Raymond James): He asked how they can keep elevating AUR as quality of sales moderates and what product, pricing or marketing levers can sustain AUR momentum and margin gains.
A: John said they reset strategic pricing across the group, have started to raise outlet prices, and will take selective full-price increases where opportunity exists. Tyler said they are targeting to improve gross margin substantially in fiscal '27 and beyond through higher full-price sell-throughs, AUR gains and efficiencies in distribution, logistics and manufacturing; John also reiterated Jimmy Choo is not for sale and could be a large growth contributor.
"We are targeting to improve our gross margin substantially as we go through not only in fiscal '27, but beyond." — Tyler Reddien (CFO)
Q3 guide assumptions and full-price trends
Q (Mark Altschwager · Baird): He asked if the Q3 guide assumes October trends hold or further holiday improvement, and whether full-price channel is positive quarter-to-date.
A: They said they don't give month-by-month trends but expect sequential improvement through the quarter, and that product flow is a key issue — they were $50 million short in Q2 and that product is coming in for Q3 with some air shipments. They also said the guidance assumes Michael Kors full-price returns to positive during the quarter.
"And remember, this does assume that Michael Kors full price does return to positive during the quarter." — John Idol (CEO·CHAIR)