Capri Holdings Ltd
For the period ended Sep 26, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 26, 2026 · Filed Oct 30, 2026
CPRI$20.54-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-27; filed 2026-08-05.
0001530721-26-000081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-26; filed 2026-10-30.
0001530721-26-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 95 previous paragraphs and 137 current paragraphs.
55 unchanged; 36 reworded; 35 added; 4 removed; 0 previous and 11 current paragraphs rearranged.
Tables are not compared: 13 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
(1)Impairment of assets during the three and six months ended September 26, 2026 and September 27, 2025 primarily related to operating lease right-of-use assets at certain Michael Kors store locations.
Current report
Impairment of Assets
Current report
For the three months ended September 26, 2026 and September 27, 2025, we recognized asset impairment charges of $12 million and $21 million, respectively, primarily related to the impairment of operating lease right-of-use assets at certain Michael Kors store locations. Refer to Note 12 - “Fair Value Measurements” to the accompanying consolidated financial statements for additional information.
Current report
Restructuring and Other Expense
Current report
During the three months ended September 26, 2026, we recorded expense of $1 million primarily related to employee severance due to restructuring activities completed during the quarter. During the three months ended September 27, 2025, we recorded expenses of $2 million primarily related to store closure costs. Refer to Note 9 - “Restructuring and Other Expense” to the accompanying consolidated financial statements for additional information.
Current report
Income (Loss) from Continuing Operations
Current report
Income from continuing operations was $10 million for the three months ended September 26, 2026, compared to a loss of $12 million for the three months ended September 27, 2025. Income from continuing operations as a percentage of total revenue was 1.2% for the three months ended September 26, 2026, compared to a loss of 1.4% for the three months ended September 27, 2025.
Current report
•Michael Kors recorded income from operations of $68 million for the three months ended September 26, 2026, compared to $73 million for the three months ended September 27, 2025. Operating margin increased from 10.1% for the three months ended September 27, 2025, to 10.3% for the three months ended September 26, 2026, primarily due to the factors noted above.
Current report
Foreign Currency (Gain) Loss
Current report
Provision for Income Taxes
Current report
The provision for income taxes was $17 million on pre-tax income of $44 million for the three months ended September 26, 2026, compared to a provision of $36 million on pre-tax income of $2 million for the three months ended September 27, 2025. Our effective tax rate for the three months ended September 26, 2026 compared to our effective tax rate for the three months ended September 27, 2025 is not a meaningful metric as both periods were significantly impacted by valuation allowance adjustments, and the prior year rate was disproportionately affected by a substantially lower level of pre-tax income.
Current report
Net Income (Loss) from Continuing Operations
Current report
Results of Operations
Current report
Comparison of the six months ended September 26, 2026 with the six months ended September 27, 2025
Current report
Total Revenue
Current report
Total revenue decreased $75 million, or 4.5%, to $1.578 billion for the six months ended September 26, 2026, compared to $1.653 billion for the six months ended September 27, 2025 on both a reported and constant currency basis.
Current report
•Michael Kors revenue decreased $107 million, or 7.9%, to $1.253 billion for the six months ended September 26, 2026, compared to $1.360 billion for the six months ended September 27, 2025, which included unfavorable foreign currency effects of $1 million. On a constant currency basis, revenue decreased $106 million, or 7.8%, primarily driven by our quality of sale initiatives, as we reduced promotional activity compared to the prior year, as well as inventory delays which constrained product availability.
Current report
Gross Profit
Current report
Gross profit decreased $12 million, or 1.2%, to $1.012 billion for the six months ended September 26, 2026, compared to $1.024 billion for the six months ended September 27, 2025. Gross profit as a percentage of total revenue was 64.1% and 61.9% for the six months ended September 26, 2026 and September 27, 2025, respectively.
Current report
•Michael Kors gross profit decreased $33 million, or 4.0%, to $785 million for the six months ended September 26, 2026, compared to $818 million for the six months ended September 27, 2025. The 250 basis point increase in gross profit margin was primarily attributable to higher full price sell-throughs and lower U.S. import tariff costs compared to the prior year.
Current report
•Jimmy Choo gross profit increased $21 million, or 10.2%, to $227 million for the six months ended September 26, 2026, compared to $206 million for the six months ended September 27, 2025. The 50 basis point decrease in gross profit margin was primarily due to unfavorable channel mix partially offset by higher full price sell-throughs.
Current report
Total Operating Expenses
Current report
Total operating expenses decreased $35 million, or 3.4%, to $985 million for the six months ended September 26, 2026, compared to $1.020 billion for the six months ended September 27, 2025. Total operating expenses increased to 62.4% as a percentage of total revenue for the six months ended September 26, 2026, compared to 61.7% for the six months ended September 27, 2025. The components that comprise total operating expenses are explained below.
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses decreased $26 million, or 2.8%, to $910 million for the six months ended September 26, 2026, compared to $936 million for the six months ended September 27, 2025. As a percentage of total revenue, selling, general and administrative expenses increased to 57.7% for the six months ended September 26, 2026, compared to 56.6% for the six months ended September 27, 2025.
Current report
Impairment of Assets
Current report
For the six months ended September 26, 2026 and September 27, 2025, we recognized asset impairment charges of $12 million and $21 million, respectively, primarily related to the impairment of operating lease right-of-use assets at certain Michael Kors store locations. Refer to Note 12 - “Fair Value Measurements” to the accompanying consolidated financial statements for additional information.
Current report
Restructuring and Other Expense
Current report
During the six months ended September 26, 2026, we recorded expense of $4 million primarily related to employee severance due to restructuring activities completed during the period. During the six months ended September 27, 2025, we recorded expenses of $3 million primarily related to store closure costs. Refer to Note 9 - “Restructuring and Other Expense” to the accompanying consolidated financial statements for additional information.
Current report
•Jimmy Choo recorded income from operations of $15 million for the six months ended September 26, 2026, compared to a loss of $5 million for the six months ended September 27, 2025. Operating margin improved from a loss of 1.7% for the six months ended September 27, 2025, to income of 4.6% for the six months ended September 26, 2026, primarily due to leveraging of operating expenses on higher revenues compared to the prior year.
Current report
Other Income, net
Current report
Interest Income, net
Current report
(Benefit) Provision for Income Taxes
Current report
As a result of the above, our net income was $97 million for the six months ended September 26, 2026, compared to net income of $22 million for the six months ended September 27, 2025.
Current report
Cash Provided by (Used in) Operating Activities
Removed paragraphs (4)
Previous report
$49 million as of July 31, 2026. We still expect to recover the full amount, though actual timing and amounts are subject to completion of the CBP’s refund process and involve inherent risks, including delays in government processing, administrative offsets, appeals of court orders directing refunds, or changes in law or policy affecting the refund process.
Previous report
NM Not meaningful
Previous report
Benefit for Income Taxes
Previous report
Cash Provided by Operating Activities
Reworded paragraphs (36)
Previous wording
Macroeconomic conditions and inflationary pressures. Global economic conditions, including inflationary pressure, geopolitical instability due to war or other geopolitical factors (such as the conflicts in the Middle East) and broader macroeconomic uncertainty and the related impact on levels of consumer spending worldwide impacted our business during the first three months of Fiscal 2027, and are likely to continue to impact our business and the luxury accessories, footwear and apparel industry overall for the foreseeable future. Given the discretionary nature of our products, fluctuations in consumer confidence and disposable income, as well as elevated inflation, impact our business performance.
Current wording
Macroeconomic conditions and inflationary pressures. Global economic conditions, including inflationary pressure, higher interest rates, geopolitical instability due to war or other geopolitical factors (such as the conflicts in the Middle East) and broader macroeconomic uncertainty and the related impact on levels of consumer spending worldwide impacted our business during the first six months of Fiscal 2027, and are likely to continue to impact our business and the luxury accessories, footwear and apparel industry overall for the foreseeable future. Given the discretionary nature of our products, fluctuations in consumer confidence and disposable income, as well as elevated inflation, impact our business performance.
Previous wording
Costs of manufacturing, tariffs and import regulations. Our results of operations were impacted by volatility in manufacturing and sourcing costs during the first three months of Fiscal 2027, primarily driven by changes in raw material prices, labor costs and fuel and freight expenses (including increases in such costs due to the conflicts in the Middle East). In addition, because all of our products sold in the United States are manufactured outside the U.S., changes in trade policies, tariffs and import regulations affected product costs and operating income. In February 2026, the U.S. Supreme Court held that tariffs imposed under IEEPA were unlawful. We are entitled to a refund of approximately $65 million in IEEPA tariffs previously paid to U.S. Customs and Border Protection. Accordingly, as we intend to recover all the IEEPA tariffs previously paid we recorded an IEEPA tariff refund receivable of $65 million in the prior fiscal year of which we have received
Current wording
Costs of manufacturing, tariffs and import regulations. Our results of operations were impacted by volatility in manufacturing and sourcing costs during the first six months of Fiscal 2027, primarily driven by changes in raw material prices, labor costs and fuel and freight expenses (including increases in such costs due to the conflicts in the Middle East). In addition, because all of our products sold in the United States are manufactured outside the U.S., changes in trade policies, tariffs and import regulations affected product costs and operating income.
Previous wording
In response to the U.S. Supreme Court’s decision, the U.S. President issued an executive order imposing tariffs of 10% pursuant to Section 122 of the Trade Act of 1974 effective for 150 days, which commenced on February 24, 2026 and subsequently expired on July 24, 2026. On July 23, 2026, the United States Trade Representative took action under Section 301 imposing tariffs on 60 economies for forced-labor enforcement failures, at country-specific rates of 10% or 12.5%, effective on July 24, 2026. The outlook on further trade policy actions is unclear, and these actions have led to significant volatility and uncertainty in global markets. Uncertainty regarding the scope, duration and administration of trade measures, including the timing and recoverability of tariff refunds or relief where applicable, also contributed to, and may continue to contribute to, variability in costs and cash flows. We continue to seek to mitigate the impact of trade measures through sourcing strategies, free trade agreements and other supply chain initiatives, where available, but the extent to which we will be able to offset through such mitigation efforts is difficult to predict.
Current wording
In February 2026, the U.S. Supreme Court held that tariffs imposed under IEEPA were unlawful. In response to the U.S. Supreme Court’s decision, the U.S. President issued an executive order imposing tariffs of 10% pursuant to Section 122 of the Trade Act of 1974 effective for 150 days, which commenced on February 24, 2026 and subsequently expired on July 24, 2026. On July 23, 2026, the United States Trade Representative took action under Section 301 imposing tariffs on 60 economies for forced-labor enforcement failures, at country-specific rates of 10% or 12.5%, effective on July 24, 2026. The outlook on further trade policy actions is unclear, and these actions have led to significant volatility and uncertainty in global markets. Uncertainty regarding the scope, duration and administration of trade measures, including the timing and recoverability of tariff refunds or relief where applicable, also contributed to, and may continue to contribute to, variability in costs and cash flows. We continue to seek to mitigate the impact of trade measures through sourcing strategies, free trade agreements and other supply chain initiatives, where available, but the extent to which we will be able to offset through such mitigation efforts is difficult to predict.
Previous wording
Foreign currency fluctuation and foreign currency hedging instruments. Our consolidated results were impacted by movements in foreign currency exchange rates between our reporting currency, the United States dollar, and the functional currency of our non-United States subsidiaries, primarily the Euro, the British Pound, the Chinese Renminbi and the Japanese Yen, among others. Currency volatility impacted our first quarter Fiscal 2027 reported results and contributed, or are expected to contribute, to variability of results in prior and future periods. We also utilize derivative instruments, including cross-currency hedges, to manage foreign currency exposure associated with our net investments in foreign subsidiaries, which can help mitigate, but does not eliminate, the impact of foreign exchange fluctuations, and the effectiveness of our hedging strategies may vary based on market conditions and the timing and magnitude of currency movements.
Current wording
Foreign currency fluctuation and foreign currency hedging instruments. Our consolidated results were impacted by movements in foreign currency exchange rates between our reporting currency, the United States dollar, and the functional currency of our non-United States subsidiaries, primarily the Euro, the British Pound, the Chinese Renminbi and the Japanese Yen, among others. Currency volatility has impacted our Fiscal 2027 reported results and contributed, or is expected to contribute, to variability of results in prior and future periods. We also utilize derivative instruments, including cross-currency hedges, to manage foreign currency exposure associated with our net investments in foreign subsidiaries, which can help mitigate, but does not eliminate, the impact of foreign exchange fluctuations, and the effectiveness of our hedging strategies may vary based on market conditions and the timing and magnitude of currency movements.
Previous wording
We generate revenue through the sale of Jimmy Choo luxury goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, and through our e-commerce sites. In addition, revenue is generated through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo tradename in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), department stores and specialty stores worldwide, as well as through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of products, including fragrances and eyewear.
Current wording
We generate revenue through the sale of Jimmy Choo luxury footwear, handbags and small leather goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, and through our e-commerce sites. We also sell Jimmy Choo products directly to department stores and specialty stores worldwide and to our geographic licensees. In addition, revenue is generated through product and geographic licensing arrangements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of products, including fragrances and eyewear, as well as through geographic licensing arrangements, which allow third parties to use the Jimmy Choo tradename in connection with the retail and/or wholesale sales of our Jimmy Choo branded products in specific geographic regions.
Previous wording
In addition to the reportable segments discussed above, we have certain corporate costs that are not directly attributable to our brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information technology systems expenses and Capri transformation costs. In addition, certain other costs are not allocated to segments, including restructuring and other expense. The segment structure is consistent with how our chief operating decision maker plans and allocates resources, manages the business and assesses performance.
Current wording
In addition to the reportable segments discussed above, we have certain corporate costs that are not directly attributable to our brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information technology systems expenses and Capri transformation costs. In addition, certain other costs are not allocated to segments, including impairment charges and restructuring and other expense. The segment structure is consistent with how our chief operating decision maker plans and allocates resources, manages the business and assesses performance.
Previous wording
The following table presents our total revenue and income from continuing operations by segment for the three months ended June 27, 2026 and June 28, 2025 (in millions):
Current wording
The following table presents our total revenue and income from continuing operations by segment for the three and six months ended September 26, 2026 and September 27, 2025 (in millions):
Previous wording
Total revenue decreased $28 million, or 3.5%, to $769 million for the three months ended June 27, 2026, compared to $797 million for the three months ended June 28, 2025, which included net favorable foreign currency effects of approximately $5 million, primarily as a result of the weakening of the United States dollar compared to the Euro and British Pound. On a constant currency basis, our total revenue decreased $33 million, or 4.1%.
Current wording
Total revenue decreased $47 million, or 5.5%, to $809 million for the three months ended September 26, 2026, compared to $856 million for the three months ended September 27, 2025, which included net unfavorable foreign currency effects of approximately $5 million, primarily as a result of the strengthening of the United States dollar compared to the Euro. On a constant currency basis, our total revenue decreased $42 million, or 4.9%.
Previous wording
•Michael Kors revenue decreased $45 million, or 7.1%, to $590 million for the three months ended June 27, 2026, compared to $635 million for the three months ended June 28, 2025, which included favorable foreign currency effects of $3 million. On a constant currency basis, revenue decreased $48 million, or 7.6%, primarily driven by our quality of sale initiatives, as we reduced promotional activity compared to the prior year.
Current wording
•Michael Kors revenue decreased $62 million, or 8.6%, to $663 million for the three months ended September 26, 2026, compared to $725 million for the three months ended September 27, 2025, which included unfavorable foreign currency effects of $4 million. On a constant currency basis, revenue decreased $58 million, or 8.0%, primarily driven by our quality of sale initiatives, as we reduced promotional activity compared to the prior year, as well as inventory delays which constrained product availability.
Previous wording
•Jimmy Choo revenue increased $17 million, or 10.5%, to $179 million for the three months ended June 27, 2026, compared to $162 million for the three months ended June 28, 2025, which included favorable foreign currency effects of $2 million. On a constant currency basis, revenue increased $15 million, or 9.3%, primarily driven by growth across all channels, reflecting strong brand momentum and the continued success of our product and marketing initiatives.
Current wording
•Jimmy Choo revenue increased $15 million, or 11.5%, to $146 million for the three months ended September 26, 2026, compared to $131 million for the three months ended September 27, 2025, which included unfavorable foreign currency effects of $1 million. On a constant currency basis, revenue increased $16 million, or 12.2%, primarily driven by growth across all channels, reflecting strong brand momentum and the continued success of our product and marketing initiatives.
Previous wording
Gross profit decreased $2 million, or 0.4%, to $500 million for the three months ended June 27, 2026, compared to $502 million for the three months ended June 28, 2025. Gross profit as a percentage of total revenue was 65.0% and 63.0% for the three months ended June 27, 2026 and June 28, 2025, respectively.
Current wording
Gross profit decreased $10 million, or 1.9%, to $512 million for the three months ended September 26, 2026, compared to $522 million for the three months ended September 27, 2025. Gross profit as a percentage of total revenue was 63.3% and 61.0% for the three months ended September 26, 2026 and September 27, 2025, respectively.
Previous wording
•Michael Kors gross profit decreased $11 million, or 2.8%, to $377 million for the three months ended June 27, 2026, compared to $388 million for the three months ended June 28, 2025. The 280 basis point increase in gross profit margin was primarily attributable to higher full price sell-throughs and lower U.S. import tariff costs compared to the prior year.
Current wording
•Michael Kors gross profit decreased $22 million, or 5.1%, to $408 million for the three months ended September 26, 2026, compared to $430 million for the three months ended September 27, 2025. The 220 basis point increase in gross profit margin was primarily attributable to higher full price sell-throughs and lower U.S. import tariff costs compared to the prior year.
Previous wording
•Jimmy Choo gross profit increased $9 million, or 7.9%, to $123 million for the three months ended June 27, 2026, compared to $114 million for the three months ended June 28, 2025. The 170 basis point decrease in gross profit margin was primarily due to unfavorable channel mix.
Current wording
•Jimmy Choo gross profit increased $12 million, or 13.0%, to $104 million for the three months ended September 26, 2026, compared to $92 million for the three months ended September 27, 2025. The 100 basis point increase in gross profit margin was primarily due to higher full price sell-throughs.
Previous wording
Total operating expenses decreased $3 million, or 0.6%, to $483 million for the three months ended June 27, 2026, compared to $486 million for the three months ended June 28, 2025. Total operating expenses increased to 62.8% as a percentage of total revenue for the three months ended June 27, 2026, compared to 61.0% for the three months ended June 28, 2025. The components that comprise total operating expenses are explained below.
Current wording
Total operating expenses decreased $32 million, or 6.0%, to $502 million for the three months ended September 26, 2026, compared to $534 million for the three months ended September 27, 2025. Total operating expenses decreased to 62.1% as a percentage of total revenue for the three months ended September 26, 2026, compared to 62.4% for the three months ended September 27, 2025. The components that comprise total operating expenses are explained below.
Previous wording
Selling, general and administrative expenses decreased $4 million, or 0.9%, to $451 million for the three months ended June 27, 2026, compared to $455 million for the three months ended June 28, 2025. As a percentage of total revenue, selling, general and administrative expenses increased to 58.6% for the three months ended June 27, 2026, compared to 57.1% for the three months ended June 28, 2025.
Current wording
Selling, general and administrative expenses decreased $22 million, or 4.6%, to $459 million for the three months ended September 26, 2026, compared to $481 million for the three months ended September 27, 2025. As a percentage of total revenue, selling, general and administrative expenses increased to 56.7% for the three months ended September 26, 2026, compared to 56.2% for the three months ended September 27, 2025.
Previous wording
•Michael Kors selling, general and administrative expenses decreased $3 million, or 1.0%, to $304 million for the three months ended June 27, 2026, compared to $307 million for the three months ended June 28, 2025. The decrease was primarily due to cost savings initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Current wording
•Michael Kors selling, general and administrative expenses decreased $17 million, or 5.0%, to $322 million for the three months ended September 26, 2026, compared to $339 million for the three months ended September 27, 2025. The decrease was primarily due to cost savings and optimization initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Previous wording
•Jimmy Choo selling, general and administrative expenses remained consistent with the prior year increasing $1 million, or 1.0%, to $104 million for the three months ended June 27, 2026, compared to $103 million for the three months ended June 28, 2025.
Current wording
•Jimmy Choo selling, general and administrative expenses remained consistent with the prior year increasing $1 million, or 1.1%, to $95 million for the three months ended September 26, 2026, compared to $94 million for the three months ended September 27, 2025.
Previous wording
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, decreased $2 million, or 4.4%, to $43 million for the three months ended June 27, 2026, compared to $45 million for the three months ended June 28, 2025. The decrease was primarily due to lower professional fees related to certain information technology projects which are now complete.
Current wording
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, decreased $6 million, or 12.5%, to $42 million for the three months ended September 26, 2026 as compared to $48 million for the three months ended September 27, 2025. The decrease was primarily due to lower professional fees and other cost savings initiatives.
Previous wording
•Jimmy Choo recorded income from operations of $13 million for the three months ended June 27, 2026, compared to $4 million for the three months ended June 28, 2025. Operating margin improved from 2.5% for the three months ended June 28, 2025, to 7.3% for the three months ended June 27, 2026, primarily due to leveraging of operating expenses on higher revenues compared to the prior year.
Current wording
•Jimmy Choo recorded income from operations of $2 million for the three months ended September 26, 2026 compared to a loss of $9 million for the three months ended September 27, 2025. Operating margin increased from a loss of 6.9% for the three months ended September 27, 2025 to income of 1.4% for the three months ended September 26, 2026, primarily due to leveraging of operating expenses on higher revenues compared to the prior year.
Previous wording
For the three months ended June 27, 2026, we recognized $31 million of interest income compared to $18 million for the three months ended June 28, 2025. The $13 million improvement in interest income, net, is primarily due to lower average borrowings outstanding compared to the prior year. Refer to Note 10 - “Debt Obligations” and Note 13 - “Derivative Financial Instruments” to the accompanying consolidated financial statements for additional information.
Current wording
For the three months ended September 26, 2026, we recognized $31 million of interest income compared to $17 million of interest income for the three months ended September 27, 2025. The $14 million improvement in interest income, net, is primarily due to lower average borrowings outstanding compared to the prior year. Refer to Note 10 - “Debt Obligations” and Note 13 - “Derivative Financial Instruments” to the accompanying consolidated financial statements for additional information.
Previous wording
As a result of the above, our net income was $70 million for the three months ended June 27, 2026, compared to net income of $56 million for the three months ended June 28, 2025.
Current wording
As a result of the above, our net income was $27 million for the three months ended September 26, 2026, compared to net loss of $34 million for the three months ended September 27, 2025.
Previous wording
Income from continuing operations was $17 million for the three months ended June 27, 2026, compared to $16 million for the three months ended June 28, 2025. Income from continuing operations as a percentage of total revenue was 2.2% for the three months ended June 27, 2026, compared to income from continuing operations of 2.0% for the three months ended June 28, 2025.
Current wording
Income from continuing operations was $27 million for the six months ended September 26, 2026, compared to $4 million for the six months ended September 27, 2025. Income from continuing operations as a percentage of total revenue was 1.7% for the six months ended September 26, 2026, compared to income from continuing operations of 0.2% for the six months ended September 27, 2025.
Previous wording
•Michael Kors recorded income from operations of $55 million for the three months ended June 27, 2026, compared to $63 million for the three months ended June 28, 2025. Operating margin decreased from 9.9% for the three months ended June 28, 2025, to 9.3% for the three months ended June 27, 2026, primarily due to deleveraging of operating expenses on lower revenues compared to the prior year.
Current wording
•Michael Kors recorded income from operations of $123 million for the six months ended September 26, 2026, compared to $136 million for the six months ended September 27, 2025. Operating margin decreased from 10.0% for the six months ended September 27, 2025, to 9.8% for the six months ended September 26, 2026, primarily due to deleveraging of operating expenses on lower revenues compared to the prior year, partially offset by an increase in gross profit margin as noted above.
Previous wording
We recognized $3 million of other income during the three months ended June 27, 2026 compared to $1 million during the three months ended June 28, 2025. The $3 million of other income recognized during the three months ended June 27, 2026 primarily related to certain transition services provided to Versace pursuant to the Transition Services Agreement. Refer to Note 3 - “Discontinued Operations” to the accompanying consolidated financial statements for additional information.
Current wording
We recognized $6 million of other income during the six months ended September 26, 2026 compared to $1 million during the six months ended September 27, 2025. The other income recognized during the six months ended September 26, 2026 primarily related to certain transition services provided to Versace pursuant to the Transition Services Agreement. Refer to Note 3 - “Discontinued Operations” to the accompanying consolidated financial statements for additional information.
Previous wording
For the three months ended June 27, 2026 and June 28, 2025, we recognized a net foreign currency gain of $1 million and $5 million, respectively, primarily attributable to the remeasurement of intercompany balances between certain of our subsidiaries.
Current wording
For the six months ended September 26, 2026 and September 27, 2025, we recognized a net foreign currency gain of $1 million and $2 million, respectively, primarily attributable to the remeasurement of intercompany balances between certain of our subsidiaries.
Previous wording
The benefit for income taxes was $18 million on pre-tax income of $52 million for the three months ended June 27, 2026, compared to $16 million on pre-tax income of $40 million for the three months ended June 28, 2025. Our effective tax rate for the three months ended June 27, 2026 was (34.6)% compared to (40.0)% for the three months ended June 28, 2025. Our effective tax rate increased for the three months ended June 27, 2026 compared to our effective tax rate for the three months ended June 28, 2025 primarily due to changes in valuation allowances in both periods in proportion to the increase in pre-tax income compared to the prior year.
Current wording
The benefit for income taxes was $1 million on pre-tax income of $96 million for the six months ended September 26, 2026, compared to a provision of $20 million on pre-tax income of $42 million for the six months ended September 27, 2025. Our effective tax rate for the six months ended September 26, 2026 was (1.0)% compared to 47.6% for the six months ended September 27, 2025. Our effective tax rate decreased for the six months ended September 26, 2026 compared to our effective tax rate for the six months ended September 27, 2025 primarily due to a reduction in the Company’s valuation allowance resulting from the restructuring of certain legal entities completed during the current year, whereas the prior year was significantly impacted by an incremental valuation allowance.
Previous wording
Our primary sources of liquidity are the cash flows generated from our operations, along with borrowings available under our credit facilities and available cash and cash equivalents. Our primary use of this liquidity is to fund the ongoing cash requirements, including our working capital needs and capital investments in our business, debt repayments, acquisitions, returns of capital, including share repurchases, and other corporate activities. We believe that the cash generated from operations, together with borrowings available under our revolving credit facilities and available cash and cash equivalents, will be sufficient to meet our working capital needs for the next 12 months and beyond, including investments made and expenses incurred in connection with our store opening and renovation plans, investments in corporate and distribution facilities, continued IT system development, e-commerce and marketing initiatives. We spent $25 million on capital expenditures during the three months ended June 27, 2026. We expect to spend approximately $125 million in Fiscal 2027, which includes Michael Kors and Jimmy Choo store renovations, as well as information technology and digital enhancements.
Current wording
Our primary sources of liquidity are the cash flows generated from our operations, along with borrowings available under our credit facilities and available cash and cash equivalents. Our primary use of this liquidity is to fund the ongoing cash requirements, including our working capital needs and capital investments in our business, debt repayments, acquisitions, returns of capital, including share repurchases, and other corporate activities. We believe that the cash generated from operations, together with borrowings available under our revolving credit facilities and available cash and cash equivalents, will be sufficient to meet our working capital needs for the next 12 months and beyond, including investments made and expenses incurred in connection with our store opening and renovation plans, investments in corporate and distribution facilities, continued IT system development, e-commerce and marketing initiatives. We spent $40 million on capital expenditures during the six months ended September 26, 2026. We expect to spend approximately $100 million in Fiscal 2027, which includes Michael Kors and Jimmy Choo store renovations, as well as information technology and digital enhancements.
Previous wording
(1)For the three months ended June 28, 2025, the increase in cash and cash equivalents and restricted cash is presented on a continuing basis which differs from the Consolidated Statements of Cash Flows which is presented on a consolidated basis including discontinued operations.
Current wording
(1)For the six months ended September 27, 2025, the increase in cash and cash equivalents and restricted cash is presented on a continuing basis which differs from the Consolidated Statements of Cash Flows which is presented on a consolidated basis including discontinued operations.
Previous wording
Net cash provided by operating activities was $73 million during the three months ended June 27, 2026, as compared to net cash provided by operating activities of $20 million for the three months ended June 28, 2025. The increase in net cash provided by operating activities was primarily attributable to the timing of tax payments and an increase in net income after non-cash adjustments.
Current wording
Net cash provided by operating activities was $124 million during the six months ended September 26, 2026, as compared to net cash used in operating activities of $13 million for the six months ended September 27, 2025. The increase in net cash provided by operating activities was primarily attributable to an increase in net income after non-cash adjustments combined with the IEEPA tariff refund receipts and the timing of tax payments.
Previous wording
Net cash used in investing activities was $25 million during the three months ended June 27, 2026, as compared to net cash used in investing activities of $13 million during the three months ended June 28, 2025, which were attributable to higher capital expenditures in the current period.
Current wording
Net cash used in investing activities was $40 million during the six months ended September 26, 2026, as compared to net cash used in investing activities of $26 million during the six months ended September 27, 2025, which were attributable to higher capital expenditures primarily related to store renovations in the current period.
Previous wording
Net cash used in financing activities was $76 million during the three months ended June 27, 2026, as compared to net cash provided by financing activities of $94 million during the three months ended June 28, 2025. The change in cash from financing activities was primarily attributable to lower debt borrowings under our revolving credit facilities combined with an incremental $53 million in share repurchases during the current period.
Current wording
Net cash used in financing activities was $105 million during the six months ended September 26, 2026, as compared to net cash provided by financing activities of $187 million during the six months ended September 27, 2025. The change in cash used in financing activities was primarily attributable to the incremental share repurchases in the current period and lower net debt borrowings under our revolving credit facilities.
Previous wording
(1)The financial covenant in our 2026 Revolving Credit Facility requires us to comply with a quarterly maximum net leverage ratio of 4.0 to 1.0. As of June 27, 2026 and March 28, 2026, we were in compliance with all covenants related to our agreements then in effect governing our debt. Refer to Note 10 - “Debt Obligations” to the accompanying consolidated financial statements for additional information.
Current wording
(1)The financial covenant in our 2026 Revolving Credit Facility requires us to comply with a quarterly maximum net leverage ratio of 4.0 to 1.0. As of September 26, 2026 and March 28, 2026, we were in compliance with all covenants related to the agreements governing our debt. Refer to Note 10 - “Debt Obligations” to the accompanying consolidated financial statements for additional information.
Previous wording
(3)The balance as of June 27, 2026 and March 28, 2026 primarily consists of $14 million related to our supplier financing program recorded within short-term debt in our consolidated balance sheets.
Current wording
(3)The balance as of September 26, 2026 and March 28, 2026 primarily consists of $19 million and $14 million, respectively, related to our supplier financing program recorded within short-term debt in our consolidated balance sheets.
Previous wording
The following table presents our treasury share repurchases during the three months ended June 27, 2026 and June 28, 2025 (dollars in millions):
Current wording
The following table presents our treasury share repurchases during the six months ended September 26, 2026 and September 27, 2025 (dollars in millions):
Previous wording
During the three months ended June 27, 2026, we repurchased 2,589,502 shares through open market transactions with a fair value of $50 million as part of this program. As of June 27, 2026, the remaining availability under this share repurchase program was $871 million. No share repurchase program was in effect during the three months ended June 28, 2025.
Current wording
During the six months ended September 26, 2026, we repurchased 12,894,844 shares through open market transactions with a fair value of $200 million as part of this program. As of September 26, 2026, the remaining availability under this share repurchase program was $721 million. No share repurchase program was in effect during the six months ended September 27, 2025.
Previous wording
We have not created, and are not party to, any special-purpose entities or off-balance sheet arrangements for the purpose of raising capital, incurring debt or operating our business. Our off-balance sheet commitments relating to our outstanding letters of credit were $23 million at June 27, 2026, including $22 million in letters of credit issued outside of the 2026 Revolving Credit Facility. In addition, as of June 27, 2026, bank guarantees of approximately $29 million were supported by our various credit facilities. We do not have any other off-balance sheet arrangements or relationships with entities that are not consolidated into our financial statements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
Current wording
We have not created, and are not party to, any special-purpose entities or off-balance sheet arrangements for the purpose of raising capital, incurring debt or operating our business. Our off-balance sheet commitments relating to our outstanding letters of credit were $25 million at September 26, 2026, including $24 million in letters of credit issued outside of the 2026 Revolving Credit Facility. In addition, as of September 26, 2026, bank guarantees of approximately $29 million were supported by our various credit facilities. We do not have any other off-balance sheet arrangements or relationships with entities that are not consolidated into our financial statements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
Rearranged current paragraphs (11)
Current report — wording carried from elsewhere
We recognized $3 million of other income during the three months ended September 26, 2026 primarily related to certain transition services provided to Versace pursuant to the Transition Services Agreement. Refer to Note 3 - “Discontinued Operations” to the accompanying consolidated financial statements for additional information.
Current report — wording carried from elsewhere
For the three months ended September 26, 2026, we recognized immaterial net foreign currency gains. For the three months ended September 27, 2025, we recognized a net foreign currency loss of $3 million primarily attributable to the remeasurement of intercompany balances between certain of our subsidiaries.
Current report — wording carried from elsewhere
The following table details the results of our operations for the six months ended September 26, 2026 and September 27, 2025, and expresses the relationship of certain line items to total revenue as a percentage (dollars in millions):
Current report — wording carried from elsewhere
•Jimmy Choo revenue increased $32 million, or 10.9%, to $325 million for the six months ended September 26, 2026, compared to $293 million for the six months ended September 27, 2025, which included favorable foreign currency effects of $1 million. On a constant currency basis, revenue increased $31 million, or 10.6%, primarily driven by growth across all channels, reflecting strong brand momentum and the continued success of our product and marketing initiatives.
Current report — wording carried from elsewhere
Refer to Note 4 - “Revenue Recognition” to the accompanying consolidated financial statements for additional information.
Current report — wording carried from elsewhere
•Michael Kors selling, general and administrative expenses decreased $20 million, or 3.1%, to $626 million for the six months ended September 26, 2026, compared to $646 million for the six months ended September 27, 2025. The decrease was primarily due to cost savings and optimization initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Current report — wording carried from elsewhere
•Jimmy Choo selling, general and administrative expenses remained consistent with the prior year increasing $2 million, or 1.0%, to $199 million for the six months ended September 26, 2026, compared to $197 million for the six months ended September 27, 2025.
Current report — wording carried from elsewhere
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, decreased $8 million, or 8.6%, to $85 million for the six months ended September 26, 2026, compared to $93 million for the six months ended September 27, 2025. The decrease was primarily due to lower professional fees and other cost savings initiatives.
Current report — wording carried from elsewhere
(1)Certain corporate costs are not directly attributable to our brands and, therefore, are not allocated to segments. Refer to Note 17 - “Segment Information” to the accompanying consolidated financial statements for additional information.
Current report — wording carried from elsewhere
For the six months ended September 26, 2026, we recognized $62 million of interest income compared to $35 million for the six months ended September 27, 2025. The $27 million improvement in interest income, net, is primarily due to lower average borrowings outstanding compared to the prior year. Refer to Note 10 - “Debt Obligations” and Note 13 - “Derivative Financial Instruments” to the accompanying consolidated financial statements for additional information.
Current report — wording carried from elsewhere
Our effective tax rate may fluctuate from time to time due to the effects of valuation allowance on deferred tax assets, changes in United States federal, state and local taxes and tax rates in foreign jurisdictions. In addition, factors such as the geographic mix of earnings, enacted tax legislation and the results of various global tax strategies, may also impact our effective tax rate in future periods.