What did Capri Holdings (NYSE:CPRI) report in fiscal Q4 2026 earnings?

Capri Holdings reported fourth-quarter fiscal 2026 revenue of $796 million, down 3.7% year over year and down 7% on a constant-currency basis. Despite weaker sales, the luxury fashion company sharply improved profitability and significantly reduced debt. Net loss narrowed to just $0.01 per diluted share compared with a much larger loss a year earlier.

Why did Capri Holdings’ (NYSE:CPRI) revenue decline?

The company said it continues facing broader demand headwinds in the global luxury and discretionary consumer sectors. Luxury shoppers in several markets appear to be spending more cautiously amid macroeconomic uncertainty. Currency effects also weighed on reported revenue performance.

Why did Capri Holdings’ (NYSE:CPRI) margins improve despite lower sales?

Gross margin improved significantly to 64.8% from 59.9% a year earlier. The increase was partly supported by lower costs of goods sold and estimated tariff refunds tied to International Emergency Economic Powers Act (IEEPA) payments. Inventory reductions and operational efficiencies also likely helped profitability.

How much did Capri Holdings (NYSE:CPRI) improve its profitability?

The company dramatically reduced losses compared with the prior year. Operating loss improved from $57 million to $27 million, while adjusted operating loss was nearly eliminated at just $1 million. Adjusted net income reached $27 million, reversing a large adjusted loss reported last year.

Why are investors paying attention to Capri Holdings’ (NYSE:CPRI) debt reduction?

Capri reduced net debt from $1.4 billion to $222 million by the end of fiscal 2026. Lower debt significantly strengthens the balance sheet and reduces financial risk, especially important in cyclical luxury retail markets. Investors often view aggressive deleveraging positively because it improves financial flexibility.

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Capri Holdings narrows losses as tariff refunds and debt reduction offset sales decline

Written by Liezl GambePublished May. 27 2026Last Updated May. 27 2026

Capri Holdings (NYSE:CPRI) reported a 3.7% decline in fourth-quarter revenue for fiscal 2026, as the luxury fashion group continued to navigate broader demand headwinds across the global consumer discretionary sector.

Despite the top-line contraction, the company managed to sharply narrow its net loss and significantly pay down its total debt load.

Total revenue for the quarter ended March 28, 2026, fell to $796 million compared to the prior-year period, representing a 7% decrease on a constant-currency basis.

The company's gross profit margin showed clear signs of expansion, rising to 64.8% on a gross profit of $516 million, compared to 59.9% and $495 million a year earlier.

This margin improvement was supported by a $40 million reduction in the cost of goods sold.

The adjustment reflects an estimated receivable for International Emergency Economic Powers Act (IEEPA) tariff refunds paid by the company throughout fiscal 2026, including internal allocations calculated during the final quarter.

Operationally, the luxury group reported an operating loss of $27 million, improving from an operating loss of $57 million in the same period last year.

On an adjusted basis, the operating loss was nearly erased, landing at $1 million.

The net loss for the quarter was categorized by the company as immaterial, totaling $0.01 per diluted share, which marks a significant recovery from the net loss of $580 million, or $4.90 per diluted share, recorded in the prior-year period.

Adjusted net income came in at $27 million, or $0.22 per diluted share, reversing an adjusted net loss of $538 million from a year ago.

Capri Holdings also made progress on structural efficiencies, drawing down its net inventory by 17% year-over-year to $581 million to better align with prevailing market demand.

For the full fiscal year 2026, cash flow from operating activities reached $197 million, while capital expenditures were held at $63 million, yielding a free cash flow of $134 million.

By the close of the fiscal year, the company had aggressively reshaped its balance sheet, cutting its net debt down to $222 million from $1.4 billion last year, supported by $135 million in cash against $357 million in total outstanding borrowings.