Is Capri Holdings up for sale?

US-based fashion giant Capri Holdings could be on the market, with potential buyers understood to be circling the fashion group, according to WWD. The media outlet reported that Capri, which sold Versace to Prada in December 2025 and continues to own Michael Kors and Jimmy Choo, has connected with investors possibly interested in acquiring the business.

The process currently remains informal and one source suggested that a transaction was unlikely to happen in the near term. Some prospective buyers are understood to have reviewed Capri’s financials. A spokesperson for Capri declined to comment to WWD on “rumors or speculation”.

Capri’s changing portfolio

The latest speculation comes after a period of significant change for Capri. The group previously agreed on an 8.5 billion dollar deal to be acquired by Coach-parent Tapestry, but the agreement was abandoned in late 2024 following antitrust concerns. Capri subsequently moved to sell Versace to Prada for 1.4 billion dollar, using the proceeds to reduce its debt and refocus the business around Michael Kors and Jimmy Choo.

The remaining brands are now undergoing turnaround programmes under chairman and chief executive John Idol. Michael Kors is reducing its reliance on promotions, increasing marketing activity and refreshing its store network, while Jimmy Choo has continued to grow.

Capri reported revenue of 769 million dollars for the first quarter of fiscal 2027, down 3.5 percent year-on-year. Michael Kors' revenue declined 7.1 percent to 590 million dollars, while Jimmy Choo's revenue increased 10.5 percent to 179 million dollars. Group net income rose to 69 million from 56 million dollars, while gross margin improved to 65 percent from 63 percent.

Potential hurdles

According to WWD, Capri’s market capitalisation has fallen to around 1.7 billion dollars, compared with more than 10 billion dollars in 2022 and over 20 billion dollars in 2014.

Derivative liabilities could present a complication for any transaction, with WWD reporting that the company had 809 million dollars in derivative liabilities that could become payable immediately following a change of control. Capri said the figure represents the market-to-market fair value of its net investment hedge contracts and should not be treated as a fixed liability.

The company’s latest results show it is continuing to focus on its two remaining brands, with a revenue of approximately 3.4 billion dollars and operating income of around 170 million dollars expected for fiscal 2027.