Michael Kors has a shoe problem.
John Idol, chairman and chief executive officer of Michael Kors parent Capri Holdings, told analysts on its fourth quarter 2026 earnings call on Wednesday that the “biggest issue inside the company” is not accessories, but footwear.
“We are going through a strategic repositioning of our footwear business in Michael Kors,” Idol admitted on the call. “We’re leaning much more into the casual category, which is where there’s quite a bit of trend happening.”
Earlier on in the call, Idol noted in his prepared remarks that “trends remained challenging” in the footwear category, but the brand is seeing improvement with new styles like the Keely and Nolan sneakers and Jennings loafer, which “embody iconic Michael Kors branding elements and heritage design details.”
The CEO added that much of the company’s work to shift towards casual shoes can be seen at the brand’s full-price stores but hasn’t quite hit the outlet locations just yet.
“[Outlet] will be really the last component more towards the fourth calendar quarter of this year,” he said. “But if we can get that part of the business turned around, we will get comp store positive in our outlet stores much faster because the accessory part of the business is really heading to the right path.”
Suki Waterhouse stars in the spring 2026 campaign for Michael Kors.
Courtesy of Michael Kors
As for Capri’s Jimmy Choo business, Idol told analysts that the luxury footwear brand is “well positioned” to return to revenue growth and profitability in fiscal 2027, with total revenue expected to be around $625 million next year.
This comes as the CEO noted that the brand’s fourth quarter revenue “exceeded expectations.” In the period, Jimmy Choo saw revenue increase 5.3 percent to $140 million on a reported basis, up from $133 million the same time last year. For the full fiscal year 2026, Jimmy Choo saw revenues of $600 million, down from $605 million in 2025.
As for the brand’s footwear business, Idol said that the brand saw strength across both dress and casual, while new dress styles such as the Faiz lace pump performed well alongside iconic franchises like Azia and Sacora.
What’s more, Jimmy Choo’s expanded casual footwear offering continued to gain traction with “strong performance” from new spring styles including the Elisa ballerina flat and Sunny sneaker. “We see significant opportunity to further expand our casual footwear offerings, increasing purchase frequency among existing consumers, while attracting new clients to the brand,” Idol said.
And image from Jimmy Choo’s summer 2026 campaign.
Courtesy of Jimmy Choo
To further accelerate Jimmy Choo’s trajectory, Idol noted that the company will initiate a “profit improvement program” designed to optimize its cost base, creating the foundation for more substantial leverage and operating margin expansion in fiscal 2028 and beyond.
“Looking at fiscal 2027, we are focused on building upon the progress we made in fiscal 2026 to accelerate results and return our fashion luxury houses to growth through a set of clearly defined strategic priorities,” Idol said. Longer term, the CEO said that the company expects Jimmy Choo revenue to reach $800 million while “significantly increasing profitability” as well as expand operating margins to the low double-digit range.
According to Idol these new “strategic priorities” for Jimmy Choo include strengthening brand desirability through compelling storytelling; creating exciting luxury fashion that reflects the brand’s heritage; delivering elevated and differentiated customer experiences, both online and in stores; leveraging data analytics across the consumer journey to gain deeper insights and drive more personalized interactions; and utilizing increasing cash flow to support brand momentum, including investments in store renovations while continuing to return capital to shareholders.
But ultimately, for both brands, Idol is “encouraged” by the early validation of the company’s strategic initiatives. “The momentum we are seeing at Michael Kors and Jimmy Choo reinforces our confidence in the trajectory of our brands and the durability of our long-term growth potential,” he added.
