What Capri Holdings Ltd. told the SEC could break it.

Virtually all of Capri's products are imported and subject to duties and/or tariffs, and inventory costs explicitly include duties, tariffs and freight. The exposure is concentrated in newly tariff-targeted countries: the majority of products Capri sells in the U.S. are imported from Vietnam, Cambodia, Indonesia and Bangladesh — where the primary manufacturers of Michael Kors products are located — all of which were named in the 2025–2026 U.S. tariff announcements (with a further development noted on February 20, 2026). Higher tariffs on these countries raise landed costs and pressure margins for the brand that generates ~83% of Capri's revenue, with limited ability to relocate complex apparel/accessories sourcing quickly.

“The majority of our 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.”

Capri does not own its manufacturing and relies on independent contractors and sourcing agents to produce its Michael Kors and Jimmy Choo finished goods. Its purchases are somewhat concentrated: in each of Fiscal 2026, 2025 and 2024, a single contractor accounted for approximately 14% of total finished-goods purchases by dollar volume, and it also depends on various agents who source from numerous contractors on behalf of Michael Kors. The inability of a key contractor or agent to deliver on time, or a disruption at that contractor, could adversely affect product availability, costs and financial results.

“For Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, one contractor accounted for approximately 14 % of the Company's total finished goods purchases, based on dollar volume.”