Capri Holdings Lifts 2026 Revenue Outlook on Strong Jimmy Choo Sales Amid Michael Kors Struggles

Capri Holdings (NYSE: CPRI) surprised markets by revising its 2026 revenue guidance upward on Tuesday, thanks largely to robust performance from its Jimmy Choo brand. The luxury goods group anticipates fiscal year revenue now between $3.45 billion and $3.48 billion, tightening the range above its earlier projection of $3.38 billion to $3.45 billion.

Despite the upbeat forecast, the Michael Kors label faced headwinds last quarter with a 5.6% dip in sales, reflecting persistent challenges in its core segment. In contrast, Jimmy Choo turned in a noteworthy 5% improvement, underlining its growing appeal amid shifting consumer preferences.

Capri Holdings has been in a transitional phase after spinning off Versace to Prada late last year, aiming to streamline its portfolio amidst tariffs and uneven demand across different markets. The company's efforts to stabilize operations come against a backdrop of ongoing margin pressure and geopolitical uncertainties affecting global trade dynamics.

In the quarter ending December 27, revenues slid 4% year-on-year to $1.03 billion, but still managed to edge past analyst estimates pegged at $1 billion. Earnings per share also outperformed, landing at 81 cents versus the expected 77 cents, which provided a small cushion amid the revenue softness.

Shares of Capri Holdings responded positively in premarket trading, climbing roughly 4%, reflecting investor optimism about the revised outlook and resilience of the company's luxury brand mix. The rally highlights the market's focus on sustainable growth drivers within the group, especially given the current challenges facing retail.

The company continues wrestling with the consequences of global tariff shifts and fluctuating appetite for luxury goods in key regions, factors that keep the competitive environment tense for Capri's brands. How Capri navigates these obstacles will be critical given luxury retail's highly cyclical nature.

Investors will be watching how Capri balances its repositioning efforts with consumer demand, especially around Michael Kors, which has yet to regain solid momentum. Jimmy Choo's uptick offers a silver lining, but sustaining the momentum through the rest of the year remains a test.

With Capri raising its revenue forecast amid a challenging retail climate, the stock's movements underscore the complex interplay between brand performance, market conditions, and strategic shifts. Whether the revised forecast marks a turning point or a cautious step in recovery is still unfolding.