title: “After Selling Versace to Prada, Capri Holdings Returns to Profit in FY2026” seo_description: “After selling Versace to Prada, Capri Holdings returns to profit in FY2026 even as revenue falls 4.1%, reshaping around Michael Kors and Jimmy Choo.” seo_tags: [“Capri Holdings”, “Michael Kors”, “Jimmy Choo”, “Versace sale”, “luxury group”, “FY2026 results”] seo_slug: “capri-holdings-fy2026-profit-versace-sale”

After Selling Versace to Prada, Capri Holdings Returns to Profit in FY2026

Capri Holdings has closed a turbulent chapter. In its Fiscal 2026 results, reported on 27 May 2026, the group posted a 4.1% revenue decline to US$3,474 million — its third straight year of lower sales — yet returned to positive operating and net income after losses in the prior two years. Operating income reached $23 million and net income $138 million, versus a $1,179 million loss a year earlier.

The transformation centre-piece was the sale of Versace to Prada for about $1.38 billion (€1.25 billion), agreed in April 2025 and closed in December 2025. The divestment allowed Capri to retire debt — net debt fell from $1.6 billion to roughly $80 million — and refocus on its two remaining houses: Michael Kors and Jimmy Choo.

Michael Kors, contributing about 83% of group revenue, declined 4.7% to $2,874 million. The brand continued its repositioning — evolving assortments, cutting promotions, strengthening full-price selling and even launching an Amazon storefront — but remains heavily dependent on a weak North American market, where group sales fell 8.6% to $2,029 million. Jimmy Choo proved the most resilient, dipping just 0.8% to $600 million, with EMEA its strongest region.

Regionally, the Americas were the soft spot (–8.6%), EMEA the only grower (+5.4% to $1,003 million), and Asia stable (–1.8% to $442 million). Gross profit fell 3.9% to $2,163 million, but healthier margins and tighter inventory signalled discipline.

Strategically, Capri spent the year optimising. It ended FY2026 with 884 directly operated stores, down from 930, prioritising productivity over footprint. A three-year, $1 billion share repurchase programme was approved, with $79 million bought back in Q4. Digital transformation and AI-led decision-making were expanded across both brands.

The conclusion is nuanced. Capri is stabilised and profitable again, but sustainable revenue growth has not returned. Management expects low-single-digit growth in FY2027, leaning on product innovation, digital capability and consumer engagement. With Michael Kors still below FY2024 levels and North America its weakest region, the harder work of restoring demand lies ahead. For the leather-goods and footwear world, Capri’s story is a case study in how pruning a portfolio can buy time — without, by itself, reigniting the top line.

Source: Fashionbi (fashionbi.com)