Capri Holdings Q2 Earnings: Revenue Beat Expectations, But Bottom Line Disappoints

Capri Holdings just dropped their Q2 numbers, and the story’s mixed. On the surface, they beat Wall Street on the top line—$856M revenue vs. $830M consensus, a 3.14% surprise. But here’s the problem: they’re down 20.7% year-over-year, and earnings are a disaster.

The Real Damage:

• EPS came in at -$0.03 vs. $0.65 last year (that’s a -121% miss)
• Consensus was betting on +$0.14 EPS

So they beat on revenue but got destroyed on profitability. Classic value trap setup?

Breaking Down the Business:

By Geography:

• Americas: $491M (slightly beat estimates, but -16.9% YoY)
• Asia: $104M (crushed estimates of $78.4M, yet -25.7% YoY—worse than expected)
• EMEA: $261M (came in light vs. $264M estimate, -25% YoY)

Everything’s contracting hard. No bright spots geographically.

By Brand:

• Michael Kors: $725M (beat $697M estimate, only -1.8% YoY decline)
• Jimmy Choo: $131M (missed $133M estimate, -6.4% YoY)

Michael Kors is the only thing holding things together, but even that’s barely flat.

Operating Income Tell the Story:

• Michael Kors ops: $73M vs. $58.7M estimate (finally some strength)
• Jimmy Choo ops: -$9M vs. -$7.5M estimate (getting worse)

Jimmy Choo’s bleeding money. Michael Kors can’t carry both brands at this rate.

Stock Action: CPRI is down 2.2% over the past month while the S&P 500 is up 2.1%. Zacks gives it a Rank #2 (Buy), but that call looks risky given the earnings trajectory. The question isn’t whether they beat consensus—it’s whether the core business can stabilize before investor patience runs out.