Capri Holdings surpasses estimates after Versace sale slashes debt

Capri Holdings (NYSE:CPRI) today revealed third-quarter fiscal 2026 results, 2026, beating Wall Street expectations as the luxury group pivot's toward a leaner capital structure following the high-profile divestiture of Versace.

The London-based company posted revenue of $1.025 billion, a 4% decrease compared to the prior year, yet still ahead of analyst forecasts of $1 billion.

Adjusted earnings per share came in at $0.81, topping the consensus mark of $0.78.

The quarter was defined by a dramatic transformation of the balance sheet.

Following the completion of the Versace sale to Prada in late 2025, Capri used the proceeds to pay down nearly $1.1 billion in debt, ending the quarter with a net debt position of just $80 million.

While the company's largest brand, Michael Kors, saw revenue slip 5.6% to $858 million, the footwear icon Jimmy Choo emerged as a bright spot, posting a 5% revenue increase to $167 million and returning to operational profitability.

Following the quarter's performance, Capri updated its full-year fiscal 2026 guidance, projecting revenue between $3.45 billion and $3.475 billion and diluted EPS in the range of $1.30 to $1.40.