Capri Holdings Ltd. Q2 FY2026 earnings call

Versace sale expected to close in fiscal third quarter. Board authorized $1 billion share repurchase program to begin in fiscal '27. Michael Kors and Jimmy Choo strategic initiatives ongoing. Michael Kors retail channel shows signs of momentum with full price comps positive, brand awareness and consumer engagement initiatives, product updates. Jimmy Choo brand awareness and consumer engagement efforts, product strategy focused on accessories and casual footwear. Store renovation plan redefining luxury retail experience with warm residential design

Total company revenue decreased 2.5% to $856 million. Michael Kors second quarter revenue decreased 2% on reported basis. Retail sales in Michael Kors own channel saw sequential improvement, with full price channel comps positive. Wholesale trends improved. Jimmy Choo second quarter revenue decreased 6% on reported basis. Retail sales improved sequentially, wholesale revenue declined due to shipment timing. Michael Kors gross margin 59.3% vs 61.1% last year. Jimmy Choo gross margin 70.2% vs 68.6% last year. Michael Kors operating margin 10.1% vs 11.8% last year. Jimmy Choo operating margin negative 6.9% vs negative 3.6% last year

Reiterates full year revenue between $3.375 billion and $3.45 billion. Michael Kors revenue between $2.8 billion and $2.875 billion. Jimmy Choo revenue between $565 million and $575 million. Full year gross margin approximately 60.5% to 61%. Anticipates full year operating expense ~$2 billion, operating income ~$100 million. Third quarter total company revenue between $975 million and $1 billion. Michael Kors revenue between $825 million and $845 million. Jimmy Choo revenue between $150 million and $155 million. Third quarter gross margin rate to decline ~200 to 250 basis points. Third quarter operating margin ~7% to 8%. Anticipates third quarter net interest income ~$20 million, effective tax rate low to mid-single-digit range, diluted EPS ~$0.70 to $0.80

Q: Speak to global reception to Michael Kors full price retail repositioning, drivers of full price channel comps turning positive in Q2, and holiday opportunity.

A: John Idol discussed consumer response to branding, product, store renovations, and new Jet Set Lounge.

Q: Dive into outlet business repositioning, consumer profile, and time line for North America improvement.

A: John Idol talked about Gen Z price sensitivity, strategic price increases, new product introduction, and daigou business shutdown.

Q: Tariffs impact on 3Q and 4Q, and Michael Kors wholesale growth rate ex shift.

A: Raj Mehta and John Idol discussed tariff headwinds, timing shifts in wholesale shipments, and strategic initiatives for gross margin expansion.

Q: Full price AURs, volume vs AUR driving positive comps, and back half guidance.

A: John Idol and Raj Mehta addressed AURs, volume, and sequential improvement in full price and overall business.

Q: Expectations for revenue by geography in back half, progress in Americas, EMEA, Asia for Michael Kors.

A: John Idol commented on Europe's strong performance, Asia's China momentum, and Jimmy Choo's North America opportunity.

Q: Team needed and net interest income/currency hedging.

A: John Idol spoke about strong teams, and Raj Mehta discussed net investment hedges and debt reduction impact on net interest income