Michael Kors’ Owner Is Betting on a Comeback. The Numbers Behind the Jump

3 min read

Part of today’s What You Missed: Saturday, Oct 31.

The hook

Can a brand you see in every mall become a luxury name again? Capri Holdings, the owner of Michael Kors and Jimmy Choo, says the turn has started. Its shares jumped on Friday, Oct. 30, after the group raised its annual revenue and profit forecasts and said it expected sales to return to growth, BoF and Reuters reported.

What happened

• Sales still fell, but profit improved. Capri’s total revenue was 809 million dollars in the quarter ended Sept. 26, down 5.5 percent, according to the company’s results release. Adjusted earnings were 42 cents a share, compared with an adjusted loss of 3 cents a year earlier.
• Michael Kors shrank, but sold more at full price. Michael Kors revenue fell 8.6 percent to 663 million dollars. Its gross margin rose to 61.5 percent from 59.3 percent, which Capri attributes mainly to higher full-price sell-throughs and lower tariff rates.
• Jimmy Choo grew. Jimmy Choo revenue rose 11.5 percent to 146 million dollars, and the brand swung to an operating profit of 2 million dollars from a loss of 9 million dollars.
• Less inventory, less debt. Net inventory fell 7 percent to 712 million dollars. Net debt was 336 million dollars, versus 1.6 billion dollars a year earlier, after Capri completed the sale of Versace to Prada on Dec. 2, 2025, per the release.
• The outlook. For fiscal 2027, Capri now expects total revenue of about 3.42 billion dollars and diluted earnings of about 2.20 dollars a share. For the third quarter, which covers the holidays, it guided to about 1.005 billion dollars in revenue.

Why people care

The quote everyone is repeating comes from chairman and CEO John D. Idol in the release: “We are encouraged by the momentum building at both Michael Kors and Jimmy Choo. Throughout the second quarter, trends improved sequentially each month across both of our luxury houses.”

He also set a deadline for himself: “Looking ahead, we continue to expect total company revenue to return to growth in the second half of fiscal 2027, supported by exciting new collections, increased marketing investments and our focus on elevating the consumer experience.”

The most important number for shoppers is not revenue. It is that gross margin line. Selling more at full price means fewer markdowns, and that is how a brand rebuilds its image. Worthbury, in a same-day briefing, reported that Capri still sees Jimmy Choo as an 800-million-dollar business.

What it means for you

• Shopping. If the strategy works, the deep-discount Michael Kors bag at the outlet gets harder to find. Capri is explicitly chasing full-price sales, so expect fewer and shallower promotions over the holidays. Buy what you love now.
• Styling. Jimmy Choo is the growth story. A statement heel is having a moment, and the brand’s numbers suggest shoppers are paying for it.
• Money. Capri bought back about 10.3 million shares in the quarter at an average of roughly 14.56 dollars, per the release. That is a company signaling confidence in itself. It is not investment advice; do your own research.
• Career. “Increased marketing investments” is a direct quote from the outlook. For LA stylists, creators and event producers, a brand that is spending to reposition is a brand that is hiring partners.
• Nightlife. Watch for Jimmy Choo and Michael Kors activations this holiday season as the marketing budget kicks in.

Our take (opinion)

This is a credible first step, not a comeback yet. Revenue is still falling at Michael Kors, and the growth promise is for the back half of the fiscal year. But fewer markdowns, cleaner inventory and a much lighter debt load are exactly what a reset should look like. Michael Kors has to prove it can be desirable without a sale sign. Jimmy Choo already is.

RelatedBangladesh’s Garment Protests Could Reach Your Holiday Shopping. What to Know

Sources

• BoF / Reuters, Oct. 30, 2026: Michael Kors Owner Capri Soars After Raising Annual Forecasts
• Capri Holdings, Oct. 30, 2026: Capri Holdings Limited Reports Second Quarter Fiscal 2027 Results
• Worthbury: Daily briefing
• Back to today’s roundup: What You Missed: Saturday, Oct 31

Photo: Headline screenshot of the BoF / Reuters report, Oct. 30, 2026, linked above.

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