Capri Holdings (CPRI) Q1 2027 earnings summary

Executive summary

• First quarter revenue was $769 million, down 3.5% year-over-year, with Michael Kors declining 7.1% and Jimmy Choo growing 10.5%.

• Gross margin improved by 200 basis points to 65.0%, driven by higher full-price sell-throughs and lower tariff costs.

• Adjusted operating income rose ~40% to $28 million (3.6% margin); adjusted EPS increased 30% to $0.67.

• Net income from continuing operations was $69 million ($0.60 per diluted share); adjusted net income was $76 million ($0.67 per share).

• Results exceeded expectations, supported by strategic initiatives and strong Jimmy Choo performance.

Financial highlights

• Total revenue for Q1 was $769 million, down 3.5% year-over-year; gross profit was $500 million, with gross margin at 65.0%.

• Adjusted operating income was $28 million; adjusted EPS was $0.67, up from $0.50 last year.

• Net income was $76 million; net debt reduced to $224 million from ~$1.5 billion last year.

• Free cash flow for the quarter was $48 million, with $73 million from operating activities and $25 million in capital expenditures.

• Share repurchases totaled $50 million in Q1; $871 million remains authorized.

Outlook and guidance

• Fiscal 2027 revenue expected at ~$3.4 billion, with Michael Kors at ~$2.765 billion and Jimmy Choo at ~$635 million.

• Full-year adjusted EPS guidance maintained at ~$2.15, representing 40% growth over prior year.

• Gross margin expected at ~64% for the year; operating income projected at ~$170 million.

• Q2 revenue expected at ~$780 million; EPS at ~$0.20.

• Guidance reflects caution due to macroeconomic, inflationary, and currency risks.