Capri Holdings Ltd Mixed 1Q w/ 2H “Show-Me” Setup; Mgmt Follow-Up Takes

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Capri Holdings Ltd

Mixed 1Q w/ 2H “Show-Me” Setup; Mgmt Follow-Up

Takes

Overweight

CPRI, CPRI US

Price (04 Aug 26):$16.52

▼Price Target (Dec-27):$20.00

Prior (Dec-27):$22.00

I. Mixed 1Q w/ Core MK Miss, Offset by JC Outperformance: CPRI reported

1Q adj. EPS of $0.67 (above Street at $0.40) based on (i) reported revenues -3.5%

Y/Y (above Street -5.5% & mgmt’s implied -5.9% guidance), (ii) gross margins

expansion of +200bps Y/Y to 65.0% (below Street 65.8%), (iii) SG&A rate

favorability at 61.4% of sales (< Street 64.4%), and (iv) adj. EBIT margins of 3.6%

(above Street 1.4%).

1Q Core MK Revenue Miss = EMEA Moderation: Michael Kors revenues

declined -7.1% Y/Y (vs. Street -7.4%), benefiting by ~$10M associated with

earlier than expected timing of wholesale shipments, which translates to MK

revenues “underlying” -8.7% (or an -80bps miss relative to mgmt’s -7.9%

decline guidance). On the other hand, Jimmy Choo (23% of sales mix)

revenues grew +10.5% Y/Y (well above Street +2.4%) supported by broadbased growth across channels, regions, and categories.

Within the MK results, global retail sales were down high-single-digits

(decelerating vs. 4Q -MSD%) - and wholesale revenues were down LSD%

(vs. 4Q -MSD%), benefiting from the $10M wholesale shift. Importantly,

POS sales inflected to positive (including Department Stores positive),

led by +double-digit growth in accessories.

Retailing – Department Stores &

Specialty Softlines

Matthew R. Boss, CPA AC

(1-212) 622-2630

Amanda K. Douglas

(1-212) 622 0316

Brady T Arnette, CFA

(1-212) 622-0046

Lucas Hudson

(1-212) 622-0273

Taya Lindner

(1-212) 622-9424

J.P. Morgan Securities LLC

Quarterly Forecasts (FYE Mar)

More specifically, our math points to global Full-Price retail sales

comps decelerating to a negative mid-single-digit decline in 1Q27

(vs. -LSD% full-price comps decline in 4Q26 on our estimates)

driven by a decline in EMEA comps (vs. positive LSD% EMEA

comps in 4Q), while Americas and Asia comps remained more/less

consistent vs. 4Q.

Adj. EPS ($)

Specifically,EMEA saw a greater headwinds associated with the

…