Capri Holdings Reports Strong Q2 Revenue, Shares Surge 12%

Capri Holdings, the owner of Michael Kors, forecasted Q2 revenue above estimates, sending shares up 12%. The company's turnaround strategy, including shedding Versace and implementing cost-saving measures, has driven improving demand for luxury handbags and footwear. Capri expects tariffs on US products to increase costs by $85mln in FY26, but plans to offset the impact through sourcing optimization and price hikes. Q2 revenue is expected to be $815-$835mln, beating estimates.

Capri Holdings (CPRI) has seen a significant turnaround in its financial performance, with the company forecasting Q2 revenue above estimates and sending shares up by 12% in morning trading [2]. The turnaround strategy, which includes shedding the struggling Versace label and implementing cost-saving measures, has driven improving demand for luxury handbags and footwear, despite a broader retail slowdown [2].

The company reported a profit of 50 cents per share for the first quarter, beating analysts' estimates of 13 cents per share, and net revenue fell 6% to $797 million, compared to estimates of $793.1 million [1]. This quarterly report represents an earnings surprise of +284.62% [1]. Capri Holdings expects tariffs on products shipped into the U.S. to increase costs by about $85 million in fiscal 2026, compared to the earlier projection of $60 million [2]. To offset this impact, the company plans to implement sourcing optimization, cost efficiencies with partners, and price hikes.

For the second quarter, Capri Holdings expects revenue of about $815 million to $835 million, which beats analysts' estimates of $819.1 million [2]. This positive outlook is a result of the company's focus on making its brand more desirable through marketing and product launches, according to analyst Rachel Wolff of eMarketer [2].

Investors have been hoping for signs of strength from Capri, as its shares have lost nearly 44% over the past year and competitors have gained more market share. The company's turnaround strategy, which includes shedding its struggling Versace label and implementing cost-saving measures, has driven improving demand for luxury handbags and footwear [2]. Capri Holdings' shares have lost about 13.6% since the beginning of the year versus the S&P 500's gain of 7.1% [1].

References:
[1] https://www.nasdaq.com/articles/capri-holdings-cpri-beats-q1-earnings-and-revenue-estimates
[2] https://www.reuters.com/business/michael-kors-owner-capri-posts-upbeat-results-luxury-demand-improves-2025-08-06/