Superstar Taylor Swift was spotted wearing Jimmy Choo sandals not once but twice in October. The news coincides with a rebound at Jimmy Choo's parent company, Capri Holdings, which also owns Michael Kors.
Capri reported encouraging sales and earnings results on October 30, suggesting Michael Kors' turnaround is taking hold even as Jimmy Choo customer sales trends strengthen, causing Capri Holdings' stock to jump 16.3% on Friday.
The company's fiscal second-quarter profit doubled Wall Street's expectations, and management raised its full-year forecast. Adjusted earnings were 42 cents per share, versus 21 cents expected, on revenue of $809 million, versus estimates of roughly $786 million.
The company now expects adjusted EPS of about $2.20 this fiscal year, up from the $2.12 consensus.
For investors holding a stock that has struggled for years, the quarter offers the first sign that Michael Kors is gaining traction. It also reinforces the fact that Jimmy Choo still holds sway with trendsetters, including Swift.
Designer brand Jimmy Choo shows momentum amid Taylor Swift sandal sightings
Capri owns Michael Kors, the handbag and accessories brand found in malls and department stores, and Jimmy Choo, the luxury footwear label.
The company sold Versace to Prada in December 2025 for $1.375 billion.
Capri Holdings stock closed at $16.06 on Oct. 29 before reporting its results. Its stock price has fallen sharply since December, with its market cap down about 34%.
The weakness was tied to shoppers pulling back on aspirational luxury, and Michael Kors sales have been shrinking. As a result, Capri has reduced its inventory by 7% year over year and bought back 10.3 million shares to boost per-share profit.
The company's third-quarter sales totaled $809 million, down 5.5% from one year ago, but above analysts' $785.9 million consensus estimate.
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Michael Kors revenue fell 8.6% to $663 million, though operating margin rose 20 basis points to 10.3%.
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Jimmy Choo revenue rose 11.5% to $146 million, and operating margin improved 830 basis points to 1.4% from -6.9%.
On Oct. 6, Capri Holdings shares rose 6% after superstar Taylor Swift was spotted the night before wearing black leather Jimmy Choo Azie 85 heeled sandals on a date night celebrating Travis Kelce's birthday.
Swift also wore a royal purple satin colorway of the Jimmy Choo Saeda Sandal 100 to the Nashville Songwriters Hall of Fame Gala on Oct. 26, suggesting Jimmy Choo remains popular with trendsetters.
A 2.3% uptick in gross margin to 63.3% flowed down the income statement, with operating margin improving to 3.8% from 2.3% a year ago.
"Throughout the second quarter, trends improved sequentially each month across both of our luxury houses, reflecting the actions we have taken to sharpen our product assortments, elevate brand desirability and strengthen consumer engagement," said CEO John D. Idol.
What to watch next at Capri Holdings
Management is guiding to a fiscal year 2027 adjusted EPS of $2.20 and revenue of $3.42 billion. The fiscal Q3 guidance of slightly over $1 billion is shy of $1.02 billion analyst forecasts.
Despite that, they expect better margins to lift EPS to $2.20 in FY2027, which is better than analysts' $2.12 target.
"We continue to expect total company revenue to return to growth in the second half of fiscal 2027, supported by exciting new collections, increased marketing investments and our focus on elevating the consumer experience," said Idol.
On Oct. 16, Raymond James boosted Capri to 'strong buy' from 'outperform,' on the potential for the fiscal second quarter to outpace expectations, according to TheFly.com . At the time, they set a $20 price target and also cited rumors of a potential acquisition.
In September, WWD said Capri Holdings could find a buyer given its depressed stock price, with an acquirer interested in picking it up because of the turnaround opportunity at Michael Kors.
An acquisition is anyone's guess, so best to focus on whether Michael Kors' weakness turns to strength this holiday shopping season.
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This story was originally published by TheStreet on Oct 30, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
