Capri Holdings Ltd. Reports Strong Q1 Results Amidst Retail Challenges

Capri Holdings Ltd., a prominent player in the luxury fashion sector, has recently reported its financial results for the first quarter of fiscal 2026, ending June 28, 2025. The company, which trades on the New York Stock Exchange under the ticker CPRI, has demonstrated resilience in a challenging retail environment, surpassing Wall Street expectations.

For the quarter, Capri Holdings reported a GAAP net income of $56 million, translating to $0.47 per diluted share. When adjusted for discontinued operations and non-recurring costs, earnings rose to $0.50 per share, significantly exceeding the average analyst estimate of $0.13 per share, as surveyed by Zacks Investment Research. This performance underscores the company’s effective turnaround strategy and its ability to navigate the broader retail slowdown.

Revenue for the period stood at $797 million, marking a 6% decrease year-over-year. Despite this decline, the figure was ahead of Street forecasts, which anticipated approximately $774.5 million. The company attributed the revenue decrease to ongoing retail challenges but noted an improvement in trends throughout the quarter.

In a separate announcement, Capri Holdings beat estimates for quarterly profit and revenue, driven by a rebound in demand for its luxury brands, including Michael Kors and Jimmy Choo. This positive momentum has been supported by the company’s strategic initiatives and an improving luxury market. As a result, Capri Holdings’ shares rose about 4% in premarket trading, reflecting investor optimism.

Looking ahead, Capri Holdings anticipates second-quarter revenue to exceed estimates, further bolstering investor confidence. However, the company has also highlighted potential challenges, including the impact of U.S. tariffs, which are expected to increase its fiscal 2026 cost of goods sold by approximately $60 million. To mitigate this, Capri Holdings plans to implement sourcing optimization, enhance cost efficiencies with partners, and consider price adjustments.

As of August 4, 2025, Capri Holdings’ close price was $18.2, with a market capitalization of $2.15 billion. The company’s price-to-earnings ratio stands at -1.95, reflecting its recent financial performance and market conditions. Over the past year, Capri Holdings’ shares have experienced a decline of nearly 44%, although recent results have sparked renewed interest among investors.

In summary, Capri Holdings Ltd. has demonstrated a strong performance in Q1 2026, overcoming retail challenges and exceeding financial expectations. The company’s strategic initiatives and improving demand for its luxury brands position it well for continued growth, despite potential headwinds from tariffs and market volatility.