A month has gone by since the last earnings report for Capri Holdings (CPRI Quick QuoteCPRI - Free Report) . Shares have added about 23.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Capri Holdings due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

CPRI Posts Q2 Loss, Y/Y Declines in Michael Kors & Jimmy Choo Revenues

Capri Holdings reported results for the second quarter of fiscal 2026, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line also decreased from the prior-year period and missed the consensus estimate. Both Michael Kors and Jimmy Choo recorded year-over-year revenue declines during the quarter.

The company posted an adjusted quarterly loss of 3 cents per share in the quarter under review. The reported figure missed the Zacks Consensus Estimate of adjusted earnings of 14 cents. Also, the bottom line decreased significantly from adjusted earnings of 64 cents per share reported in the year-earlier quarter. The bottom line reflected an impact of 20 cents per share due to a higher-than-expected effective tax rate resulting from the company’s valuation allowance position.

Total revenues of $856 million beat the Zacks Consensus Estimate of $830 million but decreased 2.5% year over year on a reported basis and 4.2% on a constant-currency basis.

Gross profit decreased 4.6% year over year to $522 million. The gross margin declined 130 basis points to 61% from 62.3% in the prior year, primarily due to tariff impacts.

This designer, marketer, distributor, and retailer of branded apparel and accessories reported an adjusted operating income of $20 million, down from $37 million in the prior year. The adjusted operating margin contracted 190 basis points to 2.3% from 4.2% in the year-ago period.

CPRI’s Q2 Revenue Insights by Segments

Revenues from Michael Kors declined 1.8% year over year to $725 million on a reported basis and 3.3% on a constant-currency basis. The brand’s gross profit fell to $430 million from $451 million in the year-ago quarter. The gross margin contracted 180 basis points to 59.3% from 61.1%. Operating income declined to $73 million from $87 million in the prior-year period, while the operating margin narrowed 170 bps to 10.1%.

Jimmy Choo’s revenues were $131 million, down 6.4% on a reported basis and 9.3% on a constant-currency basis. The brand’s gross profit declined slightly to $92 million from $96 million reported in the year-ago quarter. The gross margin, however, expanded 160 basis points to 70.2% from 68.6% last year. Jimmy Choo recorded an operating loss of $9 million, compared with a loss of $5 million in the prior-year period.

Capri Holdings’ Financial Health Snapshot

The company ended the quarter with cash and cash equivalents of $120 million, long-term debt of $1.75 billion and total shareholders’ equity of negative $70 million, including non-controlling interest of $4 million. The operating cash flow for the second quarter was $33 million, while capital expenditures amounted to $13 million, resulting in a negative free cash flow of $46 million.

On Nov. 4, 2025, the company announced that its board of directors had approved a three-year share repurchase program of up to $1 billion of its outstanding ordinary shares. The program is expected to begin in fiscal 2027.

Sneak Peek Into CPRI’s Q3 FY26 Outlook

The company issued its outlook as it continues to navigate uncertainty surrounding tariffs, foreign currency fluctuations and shifting consumer spending trends. For the third quarter of fiscal 2026, Capri Holdings expects total revenues of $975 million to $1 billion. The company projects an operating margin of 7-8%, and earnings per share between 70 cents and 80 cents.

For Michael Kors, total revenues are anticipated between $825 million and $845 million, with an operating margin in the low-teens range. For Jimmy Choo, total revenues are expected between $150 million and $155 million, with an operating margin in the negative low to mid-single-digit range.

Capri Holdings’ FY26 Outlook

For fiscal 2026, management expects total revenues of $3.375-$3.45 billion, whereas it reported $4.44 billion in fiscal 2025. The company anticipates operating income of $100 million, including the estimated tariff impacts. It expects earnings per share of $1.20-$1.40 against a loss of $10 per share in fiscal 2025. Capital expenditure is forecast at $110 million.

For Michael Kors, total revenues are anticipated to be $2.8-$2.875 billion, with an operating margin in the high-single-digit range. For Jimmy Choo, total revenues are anticipated to be $565-$575 million, with an operating margin in the negative mid-single-digit range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 22.89% due to these changes.

VGM Scores

At this time, Capri Holdings has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Capri Holdings has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Capri Holdings is part of the Zacks Retail - Apparel and Shoes industry. Over the past month, Deckers (DECK Quick QuoteDECK - Free Report) , a stock from the same industry, has gained 16.1%. The company reported its results for the quarter ended September 2025 more than a month ago.

Deckers reported revenues of $1.43 billion in the last reported quarter, representing a year-over-year change of +9.1%. EPS of $1.82 for the same period compares with $1.59 a year ago.

For the current quarter, Deckers is expected to post earnings of $2.76 per share, indicating a change of -8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.

Deckers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.