Capri Holdings Ltd
For the period ended Jun 27, 2026. Filed Aug 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 27, 2026 · Filed Aug 5, 2026
CPRI$20.54-2.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-27; filed 2026-02-03.
0001530721-26-000012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-08-05.
0001530721-26-000081
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 95 current paragraphs.
41 unchanged; 38 reworded; 16 added; 58 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 18 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Costs of manufacturing, tariffs and import regulations. Our results of operations were impacted by volatility in manufacturing and sourcing costs during the first three months of Fiscal 2027, primarily driven by changes in raw material prices, labor costs and fuel and freight expenses (including increases in such costs due to the conflicts in the Middle East). In addition, because all of our products sold in the United States are manufactured outside the U.S., changes in trade policies, tariffs and import regulations affected product costs and operating income. In February 2026, the U.S. Supreme Court held that tariffs imposed under IEEPA were unlawful. We are entitled to a refund of approximately $65 million in IEEPA tariffs previously paid to U.S. Customs and Border Protection. Accordingly, as we intend to recover all the IEEPA tariffs previously paid we recorded an IEEPA tariff refund receivable of $65 million in the prior fiscal year of which we have received
Current report
$49 million as of July 31, 2026. We still expect to recover the full amount, though actual timing and amounts are subject to completion of the CBP’s refund process and involve inherent risks, including delays in government processing, administrative offsets, appeals of court orders directing refunds, or changes in law or policy affecting the refund process.
Current report
In response to the U.S. Supreme Court’s decision, the U.S. President issued an executive order imposing tariffs of 10% pursuant to Section 122 of the Trade Act of 1974 effective for 150 days, which commenced on February 24, 2026 and subsequently expired on July 24, 2026. On July 23, 2026, the United States Trade Representative took action under Section 301 imposing tariffs on 60 economies for forced-labor enforcement failures, at country-specific rates of 10% or 12.5%, effective on July 24, 2026. The outlook on further trade policy actions is unclear, and these actions have led to significant volatility and uncertainty in global markets. Uncertainty regarding the scope, duration and administration of trade measures, including the timing and recoverability of tariff refunds or relief where applicable, also contributed to, and may continue to contribute to, variability in costs and cash flows. We continue to seek to mitigate the impact of trade measures through sourcing strategies, free trade agreements and other supply chain initiatives, where available, but the extent to which we will be able to offset through such mitigation efforts is difficult to predict.
Current report
Foreign currency fluctuation and foreign currency hedging instruments. Our consolidated results were impacted by movements in foreign currency exchange rates between our reporting currency, the United States dollar, and the functional currency of our non-United States subsidiaries, primarily the Euro, the British Pound, the Chinese Renminbi and the Japanese Yen, among others. Currency volatility impacted our first quarter Fiscal 2027 reported results and contributed, or are expected to contribute, to variability of results in prior and future periods. We also utilize derivative instruments, including cross-currency hedges, to manage foreign currency exposure associated with our net investments in foreign subsidiaries, which can help mitigate, but does not eliminate, the impact of foreign exchange fluctuations, and the effectiveness of our hedging strategies may vary based on market conditions and the timing and magnitude of currency movements.
Current report
Disruptions or delays in shipping and distribution and other supply chain constraints. Our results of operations have been impacted, and may continue to be impacted, by disruptions in global shipping, distribution and supply chain operations. During recent periods, port congestion and closures, capacity constraints across ocean, trucking and distribution networks, and disruptions to certain international shipping routes contributed to increased logistics and production costs, affected the timing of inventory receipts and created pressure on gross margin.
Current report
•Michael Kors revenue decreased $45 million, or 7.1%, to $590 million for the three months ended June 27, 2026, compared to $635 million for the three months ended June 28, 2025, which included favorable foreign currency effects of $3 million. On a constant currency basis, revenue decreased $48 million, or 7.6%, primarily driven by our quality of sale initiatives, as we reduced promotional activity compared to the prior year.
Current report
•Jimmy Choo revenue increased $17 million, or 10.5%, to $179 million for the three months ended June 27, 2026, compared to $162 million for the three months ended June 28, 2025, which included favorable foreign currency effects of $2 million. On a constant currency basis, revenue increased $15 million, or 9.3%, primarily driven by growth across all channels, reflecting strong brand momentum and the continued success of our product and marketing initiatives.
Current report
Gross profit decreased $2 million, or 0.4%, to $500 million for the three months ended June 27, 2026, compared to $502 million for the three months ended June 28, 2025. Gross profit as a percentage of total revenue was 65.0% and 63.0% for the three months ended June 27, 2026 and June 28, 2025, respectively.
Current report
Other Income, net
Current report
We recognized $3 million of other income during the three months ended June 27, 2026 compared to $1 million during the three months ended June 28, 2025. The $3 million of other income recognized during the three months ended June 27, 2026 primarily related to certain transition services provided to Versace pursuant to the Transition Services Agreement. Refer to Note 3 - “Discontinued Operations” to the accompanying consolidated financial statements for additional information.
Current report
Foreign Currency Gain
Current report
Benefit for Income Taxes
Current report
Net cash used in investing activities was $25 million during the three months ended June 27, 2026, as compared to net cash used in investing activities of $13 million during the three months ended June 28, 2025, which were attributable to higher capital expenditures in the current period.
Current report
Cash (Used in) Provided by Financing Activities
Current report
Net cash used in financing activities was $76 million during the three months ended June 27, 2026, as compared to net cash provided by financing activities of $94 million during the three months ended June 28, 2025. The change in cash from financing activities was primarily attributable to lower debt borrowings under our revolving credit facilities combined with an incremental $53 million in share repurchases during the current period.
Current report
During the three months ended June 27, 2026, we repurchased 2,589,502 shares through open market transactions with a fair value of $50 million as part of this program. As of June 27, 2026, the remaining availability under this share repurchase program was $871 million. No share repurchase program was in effect during the three months ended June 28, 2025.
Removed paragraphs (58)
Previous report
Termination of the Agreement and Plan of Merger with Tapestry
Previous report
As previously disclosed, on August 10, 2023, Capri entered into an Agreement and Plan of Merger with Tapestry, a Maryland corporation, and Sunrise Merger Sub, Inc., a British Virgin Islands business company limited by shares and a direct wholly owned subsidiary of Tapestry. The Merger Agreement provided that, among other things and on the terms and subject to the conditions set forth therein, Tapestry would acquire Capri in an all-cash transaction by means of a merger of Merger Sub with and into Capri, with Capri surviving the Merger as a wholly owned subsidiary of Tapestry.
Previous report
The Merger had been approved by the boards of directors of Capri and Tapestry and by the shareholders of Capri. Completion of the Merger was subject to, among other customary conditions, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The Company received regulatory approval from all countries except for the United States. In connection with Tapestry’s proposed acquisition of Capri, on April 22, 2024, the U.S. FTC filed a lawsuit in the United States District Court for the Southern District of New York
Previous report
(the “District Court”) against Tapestry and the Company seeking to block the Merger, claiming that the Merger would violate Section 7 of the Clayton Act and that the Merger Agreement and the Merger constituted unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act and should be enjoined. The preliminary injunction hearing concluded in September 2024, and on October 24, 2024, the District Court granted the FTC's motion for a preliminary injunction to enjoin the Merger pending the completion of the FTC's in-house administrative proceeding. On October 28, 2024, Tapestry and Capri jointly filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit (the “Second Circuit”).
Previous report
On November 13, 2024, the parties to the Merger Agreement entered into a termination agreement pursuant to which they agreed to terminate the Merger Agreement, effective immediately. In connection with the termination, consistent with the Merger Agreement, Tapestry agreed to reimburse the Company approximately $45 million in cash for certain expenses on November 14, 2024. The parties to the Merger Agreement also agreed to release each other and their related parties from any and all liability, claims, rights, actions, causes of action, suits, liens, obligations, accounts, debts, demands, agreements, promises, liabilities, controversies, costs, charges, damages, expenses and fees (including attorney’s, financial advisor’s or other fees) in connection with, arising out of or related to the Merger Agreement or the transactions contemplated therein or thereby. On November 15, 2024, Capri and Tapestry stipulated to the dismissal of the appeal to the Second Circuit. On December 4, 2024, the FTC’s in-house administrative proceeding was dismissed without prejudice.
Previous report
Costs of manufacturing, tariffs and import regulations. Our industry is subject to volatility in costs related to certain raw materials used in the manufacturing of our products primarily driven by commodity prices, as well as manufacturing labor costs. In addition, our costs may be impacted by sanction tariffs imposed on our products due to changes in trade terms. In April 2025, the U.S. Government announced tariffs on imports from select countries. The majority of the Company's products sold in the U.S. are imported from countries in which these tariffs were announced, including Vietnam, Cambodia, Indonesia and Bangladesh, where the primary manufacturers of Michael Kors products are located. Increased tariffs or other trade restrictions against countries where our products are manufactured, and/or any tariffs or other trade restrictions implemented by these countries in retaliation, could materially impact our revenue and profitability.
Previous report
Foreign currency fluctuation. Our consolidated operations are impacted by the relationships between our reporting currency, the United States dollar, and those of our non-United States subsidiaries whose functional/local currency is other than the United States dollar, primarily the Euro, the British Pound, the Chinese Renminbi and the Japanese Yen, among others. We continue to expect volatility in the global foreign currency exchange rates, which may have a negative impact on the reported results of certain of our non-United States subsidiaries in the future, when translated to the United States dollar.
Previous report
Disruptions or delays in shipping and distribution and other supply chain constraints. Disruptions in our shipping and distribution network, including at U.S. ports and in the Red Sea, as well as port congestion, vessel availability, container shortages and temporary factory closures, have in the past impacted our business, and continued disruptions or delays could negatively impact our results of operations in the future.
Previous report
(1)Impairment of assets during the nine months ended December 27, 2025 primarily related to operating lease right-of-use assets at certain Michael Kors store locations. Impairment of assets during the nine months ended December 28, 2024 includes $83 million and $18 million of impairment charges related to the Jimmy Choo and Michael Kors reportable segments, respectively.
Previous report
Seasonality
Previous report
We experience certain effects of seasonality with respect to our business. We generally experience greater sales during our third fiscal quarter, primarily driven by holiday season sales.
Previous report
•Michael Kors revenue decreased $51 million, or 5.6%, to $858 million for the three months ended December 27, 2025, compared to $909 million for the three months ended December 28, 2024, which included favorable foreign currency effects of $15 million. On a constant currency basis, revenue decreased $66 million, or 7.3%, primarily due to the result of certain strategic initiatives previously put in place at Michael Kors that did not perform as expected, as well as a decrease in promotional activity.
Previous report
•Jimmy Choo revenue increased $8 million, or 5.0%, to $167 million for the three months ended December 27, 2025, compared to $159 million for the three months ended December 28, 2024, which included favorable foreign currency effects of $5 million. On a constant currency basis, revenue increased $3 million, or 1.9%, primarily attributable to higher revenue in the Americas.
Previous report
Gross profit decreased $51 million, or 7.6%, to $623 million for the three months ended December 27, 2025, compared to $674 million for the three months ended December 28, 2024, which included net favorable foreign currency effects of $13 million. Gross profit as a percentage of total revenue was 60.8% and 63.1% for the three months ended December 27, 2025 and December 28, 2024, respectively.
Previous report
Impairment of Assets
Previous report
We did not recognize any asset impairment charges for the three months ended December 27, 2025. For the three months ended December 28, 2024, we recognized asset impairment charges of $81 million primarily related to the impairment of the Jimmy Choo Wholesale reporting units’ goodwill and Jimmy Choo brand intangible assets. See Note 13 - "Fair Value of Financial Instruments" to the accompanying consolidated financial statements for additional information.
Previous report
Restructuring and Other Expense (Income)
Previous report
During the three months ended December 27, 2025, we recorded expense of $12 million primarily related to lease termination costs. During the three months ended December 28, 2024, we recorded income of $2 million primarily related to gains on lease terminations and store closure costs. See Note 10 - "Restructuring and Other Expense (Income)" to the accompanying consolidated financial statements for additional information.
Previous report
Foreign Currency Loss
Previous report
(Benefit) Provision for Income Taxes
Previous report
On July 4, 2025, the U.S. government enacted the One Big Beautiful Bill Act of 2025 (“OBBBA”) which includes, among other provisions, changes to the U.S. corporate income tax system including the allowance of immediate expensing of qualifying research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act (“Jobs Act”). Based upon our analysis, the OBBBA did not have a material impact on our consolidated financial statements.
Previous report
Results of Operations
Previous report
Comparison of the nine months ended December 27, 2025 with the nine months ended December 28, 2024
Previous report
NM Not meaningful
Previous report
Total Revenue
Previous report
•Michael Kors revenue decreased $104 million, or 4.5%, to $2.218 billion for the nine months ended December 27, 2025, compared to $2.322 billion for the nine months ended December 28, 2024, which included favorable foreign currency effects of $35 million. On a constant currency basis, revenue decreased $139 million, or 6.0%, primarily due to the result of certain strategic initiatives previously put in place at Michael Kors that did not perform as expected, as well as a decrease in promotional activity.
Previous report
•Jimmy Choo revenue decreased $12 million, or 2.5%, to $460 million for the nine months ended December 27, 2025, compared to $472 million for the nine months ended December 28, 2024, which included favorable foreign currency effects of $14 million. On a constant currency basis, revenue decreased $26 million, or 5.5%, primarily attributable to a continued slowdown in demand for certain categories of fashion luxury goods, particularly in Asia.
Previous report
Gross Profit
Previous report
Gross profit decreased $109 million, or 6.2%, to $1.647 billion for the nine months ended December 27, 2025, compared to $1.756 billion for the nine months ended December 28, 2024, which included net favorable foreign currency effects of $33 million. Gross profit as a percentage of total revenue was 61.5% and 62.8% for the nine months ended December 27, 2025 and December 28, 2024, respectively.
Previous report
•Michael Kors gross profit decreased $109 million, or 7.6%, to $1.330 billion for the nine months ended December 27, 2025, compared to $1.439 billion for the nine months ended December 28, 2024. The 200 basis point decrease in gross profit margin was primarily attributable to the unfavorable impact of increased U.S. import tariffs.
Previous report
•Jimmy Choo gross profit was flat at $317 million for the nine months ended December 27, 2025 and December 28, 2024. The 170 basis point increase in gross profit margin was primarily due to higher full price sell-throughs and lower third party sales from our Italian shoe manufacturer, which typically carries lower manufacturer margins.
Previous report
Total Operating Expenses
Previous report
Total operating expenses decreased $128 million, or 7.4%, to $1.597 billion for the nine months ended December 27, 2025, compared to $1.725 billion for the nine months ended December 28, 2024. Our operating expenses included a net unfavorable foreign currency impact of approximately $28 million. Total operating expenses decreased to 59.6% as a percentage of total revenue for the nine months ended December 27, 2025, compared to 61.7% for the nine months ended December 28, 2024. The components that comprise total operating expenses are explained below.
Previous report
Selling, General and Administrative Expenses
Previous report
Selling, general and administrative expenses decreased $54 million, or 3.5%, to $1.471 billion for the nine months ended December 27, 2025, compared to $1.525 billion for the nine months ended December 28, 2024. As a percentage of total revenue, selling, general and administrative expenses increased to 54.9% for the nine months ended December 27, 2025, compared to 54.6% for the nine months ended December 28, 2024.
Previous report
•Michael Kors selling, general and administrative expenses decreased $49 million, or 4.6%, to $1.022 billion for the nine months ended December 27, 2025, compared to $1.071 billion for the nine months ended December 28, 2024. The decrease was primarily due to cost savings initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Previous report
•Jimmy Choo selling, general and administrative expenses decreased $4 million, or 1.3%, to $298 million for the nine months ended December 27, 2025, compared to $302 million for the nine months ended December 28, 2024. The decrease was primarily due to cost savings initiatives which resulted in lower retail store related costs compared to the prior year.
Previous report
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, decreased $1 million, or 0.7%, to $151 million for the nine months ended December 27, 2025 as compared to $152 million for the nine months ended December 28, 2024. The decrease was primarily due to a decrease in professional fees related to certain Capri transformation projects which are now complete and the absence of transaction related costs incurred in the prior year, partially offset by the reimbursement for certain expenses pursuant to the termination of the Merger Agreement with Tapestry in the prior year and a net increase in allowance for credit losses in the current year.
Previous report
Impairment of Assets
Previous report
For the nine months ended December 27, 2025, we recognized asset impairment charges of $21 million primarily related to the impairment of operating lease right-of-use assets at certain Michael Kors store locations. For the nine months ended December 28, 2024, we recognized asset impairment charges of $101 million primarily related to the impairment of the Jimmy Choo Wholesale reporting units’ goodwill and Jimmy Choo brand intangible assets as well as operating lease right-of-use assets primarily at certain Michael Kors store locations. See Note 13 - "Fair Value of Financial Instruments" to the accompanying consolidated financial statements for additional information.
Showing the first 40 of 58 passages. Open the source sections for the rest.
Reworded paragraphs (38)
Previous wording
Capri Holdings Limited is a global fashion luxury group consisting of iconic brands Michael Kors and Jimmy Choo. Our commitment to glamorous style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve.
Current wording
Capri Holdings Limited is a global fashion luxury group consisting of iconic brands Michael Kors and Jimmy Choo. Our commitment to creativity, fashion, style and craftsmanship is at the heart of each of our luxury brands. We have built our reputation on designing exceptional, innovative products that cover the full spectrum of fashion luxury categories. Our strength lies in the unique DNA and heritage of each of our brands, the diversity and passion of our people and our dedication to the clients and communities we serve. Our designs inspire consumers to embrace the feeling of luxury in every moment.
Previous wording
Our Michael Kors brand was launched in 1981 by Michael Kors, a world-renowned designer, whose vision has taken the Company from its beginnings as an American luxury sportswear house to a global accessories, ready-to-wear, and footwear company with a global distribution network that has presence in over 100 countries through Company-operated retail stores and e-commerce sites, leading department stores, specialty stores and select licensing partners. Michael Kors is a highly recognized fashion luxury brand in the Americas and Europe with strong brand awareness in other international markets. Michael Kors features distinctive designs, materials and craftsmanship with a jet-set aesthetic that combines stylish elegance and a sporty attitude. Michael Kors offers three primary collections: the Michael Kors Collection line, the MICHAEL Michael Kors line and the Michael Kors Mens line. The Michael Kors Collection establishes the aesthetic authority of the entire brand and is carried by select retail stores, our e-commerce sites, as well as in the finest luxury department stores in the world. MICHAEL Michael Kors has a strong focus on accessories, in addition to offering ready-to-wear and footwear. We have also been developing our men’s business in recognition of the significant opportunity afforded by the Michael Kors brand’s established fashion authority and the expanding men’s market. Taken together, our Michael Kors collections target a broad customer base while retaining our premium luxury image.
Current wording
Our Michael Kors brand was launched in 1981 by Michael Kors, a world-renowned designer, whose vision has taken the Company from its beginnings as an American luxury sportswear house to a global accessories, footwear and apparel company with a global distribution network that has presence in over 100 countries through Company-operated retail stores and e-commerce sites, leading department stores, specialty stores and select licensing partners. Michael Kors is a highly recognized fashion luxury brand in the Americas and Europe with strong brand awareness in other international markets. Michael Kors features distinctive designs, materials and craftsmanship with a Jet Set aesthetic that combines stylish elegance and a sporty attitude. Michael Kors offers three primary collections: the Michael Kors Collection line, the MICHAEL Michael Kors line and the Michael Kors Mens line. Michael Kors Collection establishes the aesthetic authority of the entire brand and is carried by select retail stores, our e-commerce sites, as well as in the finest luxury department stores in the world. MICHAEL Michael Kors has a strong focus on accessories, in addition to offering footwear and apparel. Taken together, our Michael Kors collections target a broad customer base while retaining our premium luxury image.
Previous wording
Our Jimmy Choo brand offers a distinctive, glamorous and fashion-forward product range, whose core product offering is women’s luxury shoes, complemented by accessories, including handbags, small leather goods, jewelry, scarves and belts, as well as men’s luxury shoes and accessories. In addition, certain categories, including fragrance and eyewear, are produced under licensing agreements. Jimmy Choo’s design team is led by Sandra Choi, who has been the Creative Director for the brand since its inception in 1996. Jimmy Choo products are unique, instinctively seductive and chic. The brand offers classic and timeless luxury products, alongside innovative collections that are intended to set and lead fashion trends. Jimmy Choo is represented through its global store network, its e-commerce sites, as well as through the most prestigious department and specialty stores worldwide.
Current wording
Our Jimmy Choo brand offers a distinctive, glamorous and fashion-forward product range that, since its inception in 1996, has been anchored by women’s luxury footwear, complemented by accessories, including handbags, small leather goods, jewelry, scarves and belts, as well as men’s luxury footwear and accessories. In addition, certain categories, including fragrance and eyewear, are produced under licensing agreements. Jimmy Choo’s design team is led by Sandra Choi, who has been the Creative Director for the brand since its inception. Jimmy Choo products are unique, instinctively seductive and chic. The brand offers classic and timeless luxury products, alongside innovative collections that are intended to set and lead fashion trends. Jimmy Choo is represented through its global store network, its e-commerce sites, as well as through the most prestigious department and specialty stores worldwide.
Previous wording
On April 8, 2025, our Board of Directors made the decision to sell Versace to Prada, and a definitive agreement was entered into on April 10, 2025. Accordingly, we determined that the held for sale and discontinued operations criteria were met and we classified the results of operations and cash flows of our Versace business as discontinued operations in our consolidated statements of operations and comprehensive income (loss) and consolidated statements of cash flows for all periods presented. On December 2, 2025, we completed the sale of our Versace business. The related assets and liabilities associated with the discontinued operations are classified as held for sale in the consolidated balance sheet as of March 29, 2025. Unless otherwise noted, discussion within this management’s discussion and analysis of financial condition and results of operations relates to our continuing operations. Refer to Note 4 - "Discontinued Operations" to the accompanying consolidated financial statements for additional information.
Current wording
On April 8, 2025, our Board of Directors made the decision to sell Versace to Prada, and a definitive agreement was entered into on April 10, 2025. Accordingly, we determined that the held for sale and discontinued operations criteria were met and we classified the results of operations and cash flows of our Versace business as discontinued operations in our consolidated statements of operations and comprehensive income (loss) and consolidated statements of cash flows for all periods presented. On December 2, 2025, we completed the sale of our Versace business. Unless otherwise noted, management’s discussion and analysis of financial condition and results of operations only relates to our continuing operations. Refer to Note 3 - “Discontinued Operations” to the accompanying consolidated financial statements for additional information.
Previous wording
Macroeconomic conditions and inflationary pressures. Global economic conditions, including inflation, political instability due to war or other geopolitical factors and other macroeconomic uncertainty and the related impact on levels of consumer spending worldwide impacted our business in the first nine months of Fiscal 2026, and are likely to continue to impact our business and the luxury accessories, footwear and apparel industry overall for the foreseeable future. Purchases of discretionary luxury items, such as the accessories, footwear and apparel that we produce, tend to decline when disposable income is lower or when there are inflationary pressures or other economic uncertainty which could negatively affect our financial condition and results of operations.
Current wording
Macroeconomic conditions and inflationary pressures. Global economic conditions, including inflationary pressure, geopolitical instability due to war or other geopolitical factors (such as the conflicts in the Middle East) and broader macroeconomic uncertainty and the related impact on levels of consumer spending worldwide impacted our business during the first three months of Fiscal 2027, and are likely to continue to impact our business and the luxury accessories, footwear and apparel industry overall for the foreseeable future. Given the discretionary nature of our products, fluctuations in consumer confidence and disposable income, as well as elevated inflation, impact our business performance.
Previous wording
We generate revenue through the sale of Jimmy Choo luxury goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, and through our e-commerce sites. In addition, revenue is generated through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo tradename in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), multi-brand department stores and specialty stores worldwide, as well as through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of products, including fragrances and eyewear.
Current wording
We generate revenue through the sale of Jimmy Choo luxury goods through directly operated Jimmy Choo retail and outlet stores throughout the Americas, certain parts of EMEA and certain parts of Asia, and through our e-commerce sites. In addition, revenue is generated through wholesale sales of luxury goods to distribution partners (including geographic licensing arrangements that allow third parties to use the Jimmy Choo tradename in connection with retail and/or wholesale sales of Jimmy Choo branded products in specific geographic regions), department stores and specialty stores worldwide, as well as through product licensing agreements, which allow third parties to use the Jimmy Choo brand name and trademarks in connection with the manufacturing and sale of products, including fragrances and eyewear.
Previous wording
In addition to the reportable segments discussed above, we have certain corporate costs that are not directly attributable to our brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information technology systems expenses, including enterprise resource planning system implementation costs and Capri transformation program costs. In addition, certain other costs are not allocated to segments, including Tapestry related transaction income (costs), impairment charges and restructuring and other (expense) income. The segment structure is consistent with how our chief operating decision maker plans and allocates resources, manages the business and assesses performance.
Current wording
In addition to the reportable segments discussed above, we have certain corporate costs that are not directly attributable to our brands and, therefore, are not allocated to segments. Such costs primarily include certain administrative, corporate occupancy, shared service and information technology systems expenses and Capri transformation costs. In addition, certain other costs are not allocated to segments, including restructuring and other expense. The segment structure is consistent with how our chief operating decision maker plans and allocates resources, manages the business and assesses performance.
Previous wording
The following table presents our total revenue and income from continuing operations by segment for the three and nine months ended December 27, 2025 and December 28, 2024 (in millions):
Current wording
The following table presents our total revenue and income from continuing operations by segment for the three months ended June 27, 2026 and June 28, 2025 (in millions):
Previous wording
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Critical accounting policies are those that are the most important to the portrayal of our results of operations and financial condition and that require our most difficult, subjective and complex judgments to make estimates about the effect of matters that are inherently uncertain. In applying such policies, we must use certain assumptions that are based on our informed judgments, assessments of probability and best estimates. Estimates, by their nature, are subjective and are based on analysis of available information, including current and historical factors and the experience and judgment of management. We evaluate our assumptions and estimates on an ongoing basis. While our significant accounting policies are detailed in Note 3 - "Summary of Significant Accounting Policies" to the accompanying consolidated financial statements, our critical accounting policies are disclosed, in full, in the MD&A section of our Annual Report on Form 10-K for the fiscal year ended March 29, 2025. There have been no significant changes to our critical accounting policies and estimates since March 29, 2025.
Current wording
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Critical accounting policies are those that are the most important to the portrayal of our results of operations and financial condition and that require our most difficult, subjective and complex judgments to make estimates about the effect of matters that are inherently uncertain. In applying such policies, we must use certain assumptions that are based on our informed judgments, assessments of probability and best estimates. Estimates, by their nature, are subjective and are based on analysis of available information, including current and historical factors and the experience and judgment of management. We evaluate our assumptions and estimates on an ongoing basis. While our significant accounting policies are detailed in Note 2 - “Summary of Significant Accounting Policies” to the accompanying consolidated financial statements, our critical accounting policies are disclosed, in full, in the management’s discussion and analysis section of our Annual Report on Form 10-K for the fiscal year ended March 28, 2026. There have been no significant changes to our critical accounting policies and estimates since March 28, 2026.
Previous wording
Total revenue decreased $43 million, or 4.0%, to $1.025 billion for the three months ended December 27, 2025, compared to $1.068 billion for the three months ended December 28, 2024, which included net favorable foreign currency effects of approximately $20 million, primarily as a result of the weakening of the United States dollar compared to the Euro and British Pound. On a constant currency basis, our total revenue decreased $63 million, or 5.9%.
Current wording
Total revenue decreased $28 million, or 3.5%, to $769 million for the three months ended June 27, 2026, compared to $797 million for the three months ended June 28, 2025, which included net favorable foreign currency effects of approximately $5 million, primarily as a result of the weakening of the United States dollar compared to the Euro and British Pound. On a constant currency basis, our total revenue decreased $33 million, or 4.1%.
Previous wording
See Note 5 - "Revenue Recognition" to the accompanying consolidated financial statements for additional information.
Current wording
Refer to Note 4 - “Revenue Recognition” to the accompanying consolidated financial statements for additional information.
Previous wording
•Jimmy Choo gross profit increased $6 million, or 5.7%, to $111 million for the three months ended December 27, 2025, compared to $105 million for the three months ended December 28, 2024. The 50 basis point increase in gross profit margin was primarily due to higher full price sell-throughs.
Current wording
•Michael Kors gross profit decreased $11 million, or 2.8%, to $377 million for the three months ended June 27, 2026, compared to $388 million for the three months ended June 28, 2025. The 280 basis point increase in gross profit margin was primarily attributable to higher full price sell-throughs and lower U.S. import tariff costs compared to the prior year.
Previous wording
•Michael Kors gross profit decreased $57 million, or 10.0%, to $512 million for the three months ended December 27, 2025, compared to $569 million for the three months ended December 28, 2024. The 290 basis point decrease in gross profit margin was primarily attributable to the unfavorable impact of increased U.S. import tariffs.
Current wording
•Jimmy Choo gross profit increased $9 million, or 7.9%, to $123 million for the three months ended June 27, 2026, compared to $114 million for the three months ended June 28, 2025. The 170 basis point decrease in gross profit margin was primarily due to unfavorable channel mix.
Previous wording
Total operating expenses decreased $71 million, or 11.0%, to $577 million for the three months ended December 27, 2025, compared to $648 million for the three months ended December 28, 2024. Our operating expenses included a net unfavorable foreign currency impact of approximately $11 million. Total operating expenses decreased to 56.3% as a percentage of total revenue for the three months ended December 27, 2025, compared to 60.7% for the three months ended December 28, 2024. The components that comprise total operating expenses are explained below.
Current wording
Total operating expenses decreased $3 million, or 0.6%, to $483 million for the three months ended June 27, 2026, compared to $486 million for the three months ended June 28, 2025. Total operating expenses increased to 62.8% as a percentage of total revenue for the three months ended June 27, 2026, compared to 61.0% for the three months ended June 28, 2025. The components that comprise total operating expenses are explained below.
Previous wording
Selling, general and administrative expenses decreased $2 million, or 0.4%, to $535 million for the three months ended December 27, 2025, compared to $537 million for the three months ended December 28, 2024. As a percentage of total revenue, selling, general and administrative expenses increased to 52.2% for the three months ended December 27, 2025, compared to 50.3% for the three months ended December 28, 2024.
Current wording
Selling, general and administrative expenses decreased $4 million, or 0.9%, to $451 million for the three months ended June 27, 2026, compared to $455 million for the three months ended June 28, 2025. As a percentage of total revenue, selling, general and administrative expenses increased to 58.6% for the three months ended June 27, 2026, compared to 57.1% for the three months ended June 28, 2025.
Previous wording
•Michael Kors selling, general and administrative expenses decreased $27 million, or 6.7%, to $376 million for the three months ended December 27, 2025, compared to $403 million for the three months ended December 28, 2024. The decrease was primarily due to cost savings initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Current wording
•Michael Kors selling, general and administrative expenses decreased $3 million, or 1.0%, to $304 million for the three months ended June 27, 2026, compared to $307 million for the three months ended June 28, 2025. The decrease was primarily due to cost savings initiatives which resulted in lower retail store related costs and personnel expenses compared to the prior year.
Previous wording
•Jimmy Choo selling, general and administrative expenses decreased $3 million, or 2.9%, to $101 million for the three months ended December 27, 2025, compared to $104 million for the three months ended December 28, 2024, primarily due to decreased marketing expenses compared to the prior year.
Current wording
•Jimmy Choo selling, general and administrative expenses remained consistent with the prior year increasing $1 million, or 1.0%, to $104 million for the three months ended June 27, 2026, compared to $103 million for the three months ended June 28, 2025.
Previous wording
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, increased $28 million, or 93.3%, to $58 million for the three months ended December 27, 2025 as compared to $30 million for the three months ended December 28, 2024. The increase was primarily due to the reimbursement for certain expenses pursuant to the termination of the Merger Agreement with Tapestry in the prior year of approximately $45 million and a net increase in allowance for credit losses in the current year of approximately $11 million, partially offset by a decrease in professional fees related to certain Capri transformation projects which are now complete.
Current wording
Unallocated corporate expenses, which are included within selling, general and administrative expenses discussed above, but are not directly attributable to a reportable segment, decreased $2 million, or 4.4%, to $43 million for the three months ended June 27, 2026, compared to $45 million for the three months ended June 28, 2025. The decrease was primarily due to lower professional fees related to certain information technology projects which are now complete.
Previous wording
(1)Certain corporate costs are not directly attributable to our brands and, therefore, are not allocated to segments. See Note 18 - "Segment Information" to the accompanying consolidated financial statements for additional information.
Current wording
(1)Certain corporate costs are not directly attributable to our brands and, therefore, are not allocated to segments. Refer to Note 17 - “Segment Information” to the accompanying consolidated financial statements for additional information.
Previous wording
Income from continuing operations was $46 million for the three months ended December 27, 2025, compared to $26 million for the three months ended December 28, 2024. Income from continuing operations as a percentage of total revenue was 4.5% for the three months ended December 27, 2025, compared to 2.4% for the three months ended December 28, 2024.
Current wording
Income from continuing operations was $17 million for the three months ended June 27, 2026, compared to $16 million for the three months ended June 28, 2025. Income from continuing operations as a percentage of total revenue was 2.2% for the three months ended June 27, 2026, compared to income from continuing operations of 2.0% for the three months ended June 28, 2025.
Previous wording
•Michael Kors recorded income from operations of $119 million for the three months ended December 27, 2025, compared to $147 million for the three months ended December 28, 2024. Operating margin decreased from 16.2% for the three months ended December 28, 2024, to 13.9% for the three months ended December 27, 2025, primarily due to the unfavorable impact of increased U.S. import tariffs, partially offset by cost savings initiatives as noted above.
Current wording
•Michael Kors recorded income from operations of $55 million for the three months ended June 27, 2026, compared to $63 million for the three months ended June 28, 2025. Operating margin decreased from 9.9% for the three months ended June 28, 2025, to 9.3% for the three months ended June 27, 2026, primarily due to deleveraging of operating expenses on lower revenues compared to the prior year.
Previous wording
•Jimmy Choo recorded income from operations of $3 million for the three months ended December 27, 2025 compared to a loss of $6 million for the three months ended December 28, 2024. Operating margin increased from a loss of 3.8% for the three months ended December 28, 2024 to income of 1.8% for the three months ended December 27, 2025, primarily due to leveraging of operating expenses on higher revenues compared to the prior year.
Current wording
•Jimmy Choo recorded income from operations of $13 million for the three months ended June 27, 2026, compared to $4 million for the three months ended June 28, 2025. Operating margin improved from 2.5% for the three months ended June 28, 2025, to 7.3% for the three months ended June 27, 2026, primarily due to leveraging of operating expenses on higher revenues compared to the prior year.
Previous wording
For the three months ended December 27, 2025, we recognized $9 million of interest income compared to $8 million of interest income for the three months ended December 28, 2024. The $1 million improvement in interest income, net, is primarily due to lower average borrowings and higher interest income from our net investment hedges, partially offset by additional interest expense related to interest rate swaps and debt issuance costs due to the extinguishment of our 2025 Term Loans. See Note 11 - "Debt Obligations" and Note 14 - "Derivative Financial Instruments" to the accompanying consolidated financial statements for additional information.
Current wording
For the three months ended June 27, 2026, we recognized $31 million of interest income compared to $18 million for the three months ended June 28, 2025. The $13 million improvement in interest income, net, is primarily due to lower average borrowings outstanding compared to the prior year. Refer to Note 10 - “Debt Obligations” and Note 13 - “Derivative Financial Instruments” to the accompanying consolidated financial statements for additional information.
Previous wording
For the nine months ended December 27, 2025 and December 28, 2024, we recognized a net foreign currency gain of $2 million and loss of $8 million, respectively, primarily attributable to the remeasurement of intercompany balances with certain of our subsidiaries.
Current wording
For the three months ended June 27, 2026 and June 28, 2025, we recognized a net foreign currency gain of $1 million and $5 million, respectively, primarily attributable to the remeasurement of intercompany balances between certain of our subsidiaries.
Previous wording
The benefit for income taxes was $2 million for the three months ended December 27, 2025, compared to a provision of $13 million for the three months ended December 28, 2024. Our effective tax rate for the three months ended December 27, 2025 compared to our effective tax rate for the three months ended December 28, 2024 is not a meaningful metric due to the impact of the non-deductible goodwill impairment charges recorded for the three months ended December 28, 2024.
Current wording
The benefit for income taxes was $18 million on pre-tax income of $52 million for the three months ended June 27, 2026, compared to $16 million on pre-tax income of $40 million for the three months ended June 28, 2025. Our effective tax rate for the three months ended June 27, 2026 was (34.6)% compared to (40.0)% for the three months ended June 28, 2025. Our effective tax rate increased for the three months ended June 27, 2026 compared to our effective tax rate for the three months ended June 28, 2025 primarily due to changes in valuation allowances in both periods in proportion to the increase in pre-tax income compared to the prior year.
Previous wording
As a result of the above, our net income was $57 million for the three months ended December 27, 2025, compared to net income of $6 million for the three months ended December 28, 2024.
Current wording
As a result of the above, our net income was $70 million for the three months ended June 27, 2026, compared to net income of $56 million for the three months ended June 28, 2025.
Previous wording
Our primary sources of liquidity are the cash flows generated from our operations, along with borrowings available under our credit facilities (see below discussion regarding “Revolving Credit Facilities”) and available cash and cash equivalents. Our primary use of this liquidity is to fund the ongoing cash requirements, including our working capital needs and capital investments in our business, debt repayments, acquisitions, returns of capital, including share repurchases, and other corporate activities. We believe that the cash generated from our operations, together with borrowings available under our revolving credit facilities and available cash and cash equivalents, will be sufficient to meet our working capital needs for the next 12 months and beyond, including investments made and expenses incurred in connection with our store opening and renovation plans, investments in corporate and distribution facilities, continued IT system development, e-commerce and marketing initiatives. We spent $45 million on capital expenditures during the nine months ended December 27, 2025. We expect to spend approximately $100 million in Fiscal 2026, which includes store renovations, as well as information technology and digital enhancements. On December 2, 2025, we completed the sale of our Versace business for gross cash proceeds of $1.395 billion, subject to the aforementioned customary closing adjustments and finalization of the closing statement.
Current wording
Our primary sources of liquidity are the cash flows generated from our operations, along with borrowings available under our credit facilities and available cash and cash equivalents. Our primary use of this liquidity is to fund the ongoing cash requirements, including our working capital needs and capital investments in our business, debt repayments, acquisitions, returns of capital, including share repurchases, and other corporate activities. We believe that the cash generated from operations, together with borrowings available under our revolving credit facilities and available cash and cash equivalents, will be sufficient to meet our working capital needs for the next 12 months and beyond, including investments made and expenses incurred in connection with our store opening and renovation plans, investments in corporate and distribution facilities, continued IT system development, e-commerce and marketing initiatives. We spent $25 million on capital expenditures during the three months ended June 27, 2026. We expect to spend approximately $125 million in Fiscal 2027, which includes Michael Kors and Jimmy Choo store renovations, as well as information technology and digital enhancements.
Previous wording
(1)Net (decrease) increase in cash and cash equivalents is presented on a continuing basis which differs from the Consolidated Statements of Cash Flows which is presented on a consolidated basis including discontinued operations.
Current wording
(1)For the three months ended June 28, 2025, the increase in cash and cash equivalents and restricted cash is presented on a continuing basis which differs from the Consolidated Statements of Cash Flows which is presented on a consolidated basis including discontinued operations.
Previous wording
Net cash provided by operating activities was $258 million during the nine months ended December 27, 2025, as compared to net cash provided by operating activities of $441 million for the nine months ended December 28, 2024. The decrease in net cash provided by operating activities was primarily attributable to the timing of payments for both accounts receivable and accounts payable, as well as the timing of tax payments made in the current year.
Current wording
Net cash provided by operating activities was $73 million during the three months ended June 27, 2026, as compared to net cash provided by operating activities of $20 million for the three months ended June 28, 2025. The increase in net cash provided by operating activities was primarily attributable to the timing of tax payments and an increase in net income after non-cash adjustments.
Previous wording
(1)The financial covenant in our 2025 Credit Facilities requires us to comply with a quarterly maximum net leverage ratio of 4.0 to 1.0. The Revolving Credit Facility excludes up to a $750 million accordion feature as of December 27, 2025 and March 29, 2025, respectively. As of December 27, 2025 and March 29, 2025, we were in compliance with all covenants related to our agreements then in effect governing our debt. See Note 11 - "Debt Obligations" to the accompanying consolidated financial statements for additional information.
Current wording
(1)The financial covenant in our 2026 Revolving Credit Facility requires us to comply with a quarterly maximum net leverage ratio of 4.0 to 1.0. As of June 27, 2026 and March 28, 2026, we were in compliance with all covenants related to our agreements then in effect governing our debt. Refer to Note 10 - “Debt Obligations” to the accompanying consolidated financial statements for additional information.
Previous wording
(3)The balance as of December 27, 2025 primarily consists of $10 million related to our supplier financing program recorded within short-term debt in our consolidated balance sheets and $3 million of other loans recorded as long-term debt on our consolidated balance sheets. The balance as of March 29, 2025 consists of $24 million related to our supplier finance program recorded within short-term debt on our consolidated balance sheets and $5 million of other loans recorded as long-term debt in our consolidated balance sheets.
Current wording
(3)The balance as of June 27, 2026 and March 28, 2026 primarily consists of $14 million related to our supplier financing program recorded within short-term debt in our consolidated balance sheets.
Previous wording
We believe that our 2025 Credit Facilities are adequately diversified with no undue concentration in any one financial institution. As of December 27, 2025, there were 17 financial institutions participating in the facilities, with none maintaining a maximum commitment percentage in excess of 10%. We have no reason to believe that the participating institutions will be unable to fulfill their obligations to provide financing in accordance with the terms of the 2025 Credit Facilities.
Current wording
We believe that our 2026 Revolving Credit Facility is adequately diversified with no undue concentration in any one financial institution. As of June 27, 2026, there were 14 financial institutions participating in the facility, with none maintaining a maximum commitment percentage in excess of 12%. We have no reason to believe that the participating institutions will be unable to fulfill their obligations to provide financing in accordance with the terms of the 2026 Revolving Credit Facility.
Previous wording
See Note 11 - "Debt Obligations" in the accompanying financial statements and Note 12 - "Debt Obligations" in our Fiscal 2025 Annual Report on Form 10-K for detailed information relating to our credit facilities and debt obligations.
Current wording
Refer to Note 10 - “Debt Obligations” in the accompanying financial statements and Note 13 - “Debt Obligations” in our Fiscal 2026 Annual Report on Form 10-K for detailed information relating to our credit facilities and debt obligations.
Previous wording
The following table presents our treasury share repurchases during the nine months ended December 27, 2025 and December 28, 2024 (dollars in millions):
Current wording
The following table presents our treasury share repurchases during the three months ended June 27, 2026 and June 28, 2025 (dollars in millions):
Previous wording
On November 4, 2025, we announced the Board of Directors approved a three-year share repurchase program of up to $1.0 billion of our outstanding ordinary shares, which we expect to begin implementing in Fiscal 2027. Share repurchases may be made in open market or privately negotiated transactions and/or pursuant to Rule 10b5-1 trading plans, subject to market conditions, applicable legal requirements, trading restrictions under our insider trading policy and other relevant factors. The program may be suspended or discontinued at any time. As of December 27, 2025, we have not made any purchases as part of this program.
Current wording
On November 4, 2025, we announced the Board of Directors approved a three-year share repurchase program of up to $1.0 billion of our outstanding ordinary shares, which was implemented during the fourth quarter of Fiscal 2026. Share repurchases may be made in open market or privately negotiated transactions and/or pursuant to Rule 10b5-1 trading plans, subject to market conditions, applicable legal requirements, trading restrictions under our insider trading policy and other relevant factors. The program may be suspended or discontinued at any time.
Previous wording
See Note 15 - "Shareholders' Equity" to the accompanying consolidated financial statements for additional information.
Current wording
Refer to Note 14 - “Shareholders’ Equity” to the accompanying consolidated financial statements for additional information.
Previous wording
We have not created, and are not party to, any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or operating our business. Our off-balance sheet commitments relating to our outstanding letters of credit were $23 million at December 27, 2025, including $22 million in letters of credit issued outside of the 2025 Credit Facilities. In addition, as of December 27, 2025, bank guarantees of approximately $31 million were supported by our various credit facilities. We do not have any other off-balance sheet arrangements or relationships with entities that are not consolidated into our financial statements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
Current wording
We have not created, and are not party to, any special-purpose entities or off-balance sheet arrangements for the purpose of raising capital, incurring debt or operating our business. Our off-balance sheet commitments relating to our outstanding letters of credit were $23 million at June 27, 2026, including $22 million in letters of credit issued outside of the 2026 Revolving Credit Facility. In addition, as of June 27, 2026, bank guarantees of approximately $29 million were supported by our various credit facilities. We do not have any other off-balance sheet arrangements or relationships with entities that are not consolidated into our financial statements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources.
Previous wording
See Note 3 - "Summary of Significant Accounting Policies" to the accompanying interim consolidated financial statements for recently issued accounting standards, which may have an impact on our financial statements and/or disclosures upon adoption.
Current wording
Refer to Note 2 - “Summary of Significant Accounting Policies” to the accompanying interim consolidated financial statements for recently issued accounting standards, which may have an impact on our financial statements and/or disclosures upon adoption.
Rearranged previous paragraphs (6)
Previous report — wording carried elsewhere
For the three months ended December 27, 2025, we recognized immaterial net foreign currency losses. For the three months ended December 28, 2024, we recognized a net foreign currency loss of $15 million primarily attributable to the remeasurement of intercompany balances between certain of our subsidiaries.
Previous report — wording carried elsewhere
The following table details the results of our operations for the nine months ended December 27, 2025 and December 28, 2024, and expresses the relationship of certain line items to total revenue as a percentage (dollars in millions):
Previous report — wording carried elsewhere
Total revenue decreased $116 million, or 4.2%, to $2.678 billion for the nine months ended December 27, 2025, compared to $2.794 billion for the nine months ended December 28, 2024, which included net favorable foreign currency effects of approximately $49 million, primarily as a result of the weakening of the United States dollar compared to the Euro and British Pound. On a constant currency basis, our total revenue decreased $165 million, or 5.9%.
Previous report — wording carried elsewhere
See Note 5 - "Revenue Recognition" to the accompanying consolidated financial statements for additional information.
Previous report — wording carried elsewhere
(1)Certain corporate costs are not directly attributable to our brands and, therefore, are not allocated to segments. See Note 18 - "Segment Information" to the accompanying consolidated financial statements for additional information.
Previous report — wording carried elsewhere
Our effective tax rate may fluctuate from time to time due to the effects of valuation allowance on deferred tax assets, changes in United States federal, state and local taxes and tax rates in foreign jurisdictions. In addition, factors such as the geographic mix of earnings, enacted tax legislation and the results of various global tax strategies, may also impact our effective tax rate in future periods.