Core Insights - Capri Holdings reported a second-quarter loss for fiscal 2026, with revenues declining year over year but exceeding the Zacks Consensus Estimate [2] - The company faces challenges with revenue declines in its key brands, Michael Kors and Jimmy Choo, impacting overall financial performance [2][6][7] Financial Performance - The adjusted quarterly loss was 3 cents per share, missing the consensus estimate of 14 cents and significantly down from 64 cents per share in the prior year [3] - Total revenues were $856 million, beating the Zacks Consensus Estimate of $830 million but down 2.5% year over year [4] - Gross profit decreased 4.6% year over year to $522 million, with a gross margin decline to 61% from 62.3% [4] Segment Performance - Michael Kors revenues fell 1.8% year over year to $725 million, with a gross margin contraction to 59.3% [6] - Jimmy Choo's revenues were $131 million, down 6.4% year over year, but the gross margin improved to 70.2% [7] Financial Health - The company ended the quarter with cash and cash equivalents of $120 million and long-term debt of $1.75 billion, resulting in negative total shareholders' equity of $70 million [8] - Operating cash flow was $33 million, while capital expenditures were $13 million, leading to a negative free cash flow of $46 million [8] Future Outlook - For Q3 FY26, Capri Holdings expects total revenues between $975 million and $1 billion, with an operating margin of 7-8% and earnings per share between 70 cents and 80 cents [10][11] - For fiscal 2026, total revenues are projected to be $3.375-$3.45 billion, with an anticipated operating income of $100 million [12][13] Market Position - Capri Holdings has seen an upward trend in estimates, with a consensus estimate shift of 22.89% recently [14] - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [16]