Capri Stages a Comeback: H1 Sees Sales Decline Slow and Profits Surge

Capri Holdings is consolidating its recovery. The U.S. luxury fashion group, owner of Michael Kors and Jimmy Choo, has closed the first half of the year slowing the decline in sales and maintaining the black numbers it recovered in the first quarter. After closing the sale of Versace to Prada at the beginning of the year, the company will now focus on the growth of the other two brands in its portfolio to continue growing.

This was explained by Capri Holdings chairman and CEO John D. Idol, who made direct reference to the Versace sale transaction, valued at more than $1 billion. “We intend to use the proceeds from the sale (of Versace) to pay down most of our debt, which will strengthen our financial position and give us greater flexibility to both invest and grow,“ explained the group’s chief executive.

The U.S. giant thus closed the first six months of the year (period ending September 27th) with a turnover of $1.653 billion, 4.06% less than the previous year. Despite the decline, the drop in sales was slightly less than in the first quarter, when Capri sold 6% less. The company’s gross profit, meanwhile, stood at $1.02 billion, 5.3% less than in the first six months of 2024.

Capri has reduced sales in the Americas and Asia, while in Emea it has sold more

Capri returned its net income to positive figures at the end of the first quarter. In the first six months as a whole, moreover, the company has reinforced this upward trend: after a profit of $10 million in the previous year, the group closed the first half of 2025 earning $25 million.

By market, Capri posted its only positive performance in Europe, Africa and the Middle East (Emea). In the region as a whole, the company posted sales of $489 million, 3.4% more than in the first half of the previous year. In the Americas, however, Capri sold as much as 7.7% less, down to $950 million, while in Asia the U.S. company posted sales of $214 million, another 4% down on the previous year.

Michael Kors remains the leading brand for the group, generating a total of 1.36 billion dollars for Capri. Compared to last year, however, the brand’s sales fell by 3.7%, with the U.S. market weighing on sales. Michael Kors sales fell by 7.7% in the Americas, while those in Emea and Asia increased by 5.8% and 0.6%, respectively.

Through Michael Kors, Capri had a turnover of $1.36 billion 

With Jimmy Choo, the U.S. group posted a turnover of $293 million, another 6.3% less than in the first half of the previous year. The brand’s sales fell in the three markets in which Capri operates: 8% in America, followed by another 2% in Emea and up to 12.8% in Asia.

The U.S. giant’s operating margin, however, fell slightly in the period, from 0.3% to 0.2% at the end of the first six months. Michael Kors, on the one hand, has reduced its operating margin from 11.5% to 10%, while Jimmy Choo has already accumulated a negative operating margin of 1.7%, compared to a negative 0.3% in the previous year.

In terms of the number of stores, Capri operated 907 stores at the end of the first half of the year, down 74 stores from a year earlier. The locations are spread across 691 Michael Kors stores and another 216 Jimmy Choo stores. “Going forward, we expect industry trends to improve further in the second half of 2026, positioning us to score growth again in 2027,“ Idol added.