Q3 2026 Capri Holdings Ltd Earnings Call Transcript
Key Points
- Capri Holdings Ltd (CPRI) exceeded third-quarter expectations with total company revenue of $1.025 billion, driven by strong performance in both Michael Kors and Jimmy Choo brands.
- The sale of Versace significantly reduced the company's net debt to $80 million, strengthening its financial foundation.
- Michael Kors saw a sequential improvement in full-price sales, with higher average unit retail (AUR) and gross margins due to reduced promotional activity.
- Jimmy Choo's revenue increased by 5% year-over-year, with strong consumer response to holiday assortments and strategic initiatives.
- The company is leveraging advanced data analytics and influencer partnerships to enhance brand desirability and consumer engagement, resulting in an 8% increase in the Michael Kors global consumer database.
- Total company revenue decreased by 4% compared to the previous year, with Michael Kors revenue declining by 5.6%.
- Higher-than-anticipated tariffs negatively impacted gross margins, with Michael Kors experiencing a decline from 62.6% to 59.7%.
- Retail revenue in the Americas decreased by 7%, with Michael Kors experiencing a low-double-digit decline in the region.
- The wholesale channel for Michael Kors is expected to continue declining due to strategic reductions in off-price distribution.
- Inventory levels are expected to remain flat year-over-year, with higher tariff rates and foreign currency exchange rates offsetting unit decreases.
Greetings, and welcome to the Capri Holdings Limited third-quarter fiscal 2026 financial results call. (Operator Instructions) As a reminder, this conference is being recorded.
I'd now like to turn the conference over to your host, Jennifer Davis, Vice President of Investor Relations. Thank you. You may begin.
Good morning, everyone, and thank you for joining us on Capri Holdings Limited Third Quarter Fiscal 2026 Conference Call. With me this morning are Chairman and Chief Executive Officer, John Idol; and Interim Chief Financial Officer, Raj Mehta.
Before we begin, let me remind you that certain statements made on today's call may constitute forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ from those we expect. Those risks and uncertainties are described in today's press release and in the company's SEC filings, which are available on the company's website. Investors should not assume that the statements
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