Capri Holdings announced on February 24 that Tyler Reddien will serve as Chief Financial Officer and Chief Operating Officer, effective March 30, 2026. Reddien brings a decade‑long track record in finance and operations, most recently as CFO of The Body Shop, and has held senior roles at Natura &Co, Hertz, and United Airlines. His appointment follows the company’s strategic pivot toward a focused two‑brand model after the sale of Versace, positioning him to oversee financial discipline and operational efficiency as Capri seeks to rebuild profitability under the Michael Kors and Jimmy Choo brands.
In its most recent quarterly report, Capri reported total revenue of $1.025 billion for Q3 Fiscal 2026, a 4.0% decline from the prior year. Gross margin fell to 60.8% from 63.1% year‑over‑year, reflecting higher tariff costs and a shift in product mix. Despite the revenue dip, operating income rose to $46 million from $26 million, and operating margin improved to 4.5% from 2.4%, driven by cost‑control initiatives and a stronger mix of higher‑margin products. Adjusted earnings per share reached $0.81, beating analyst expectations of $0.77 by $0.04, a 5.2% beat that underscores the effectiveness of the company’s cost‑management program.
Capri’s full‑year guidance for 2026 remains unchanged: revenue is projected between $3.45 billion and $3.475 billion, and diluted EPS is expected to fall between $1.30 and $1.40. The guidance reflects confidence in the company’s ability to sustain margin expansion while navigating a challenging macro environment. The sale of Versace for $1.375 billion has dramatically reduced net debt to $80 million from $1.17 billion at the end of Q3 FY26, freeing capital for investment in the remaining brands.
Management highlighted the strategic importance of Reddien’s dual role. CEO John D. Idol emphasized that Reddien’s international experience and operational focus will be critical as Capri accelerates the turnaround of Michael Kors and Jimmy Choo. Reddien noted that he is honored to join the company at an “important moment” and is committed to advancing the firm’s strategic priorities and sharpening operational focus.
Investors have responded cautiously, noting the company’s margin compression and the pace of the turnaround for its core brands. While the Q3 results beat earnings expectations, the revenue decline and mixed segment performance have tempered enthusiasm, underscoring the need for continued execution on cost discipline and brand revitalization.
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