Capri (NYSE:CPRI – Get Free Report) released its earnings results on Friday. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.21 by $0.21, FiscalAI reports. Capri had a return on equity of 297.36% and a net margin of 4.44%. The business had revenue of $809.00 million for the quarter, compared to the consensus estimate of $786.55 million. During the same period in the previous year, the company posted ($0.03) earnings per share. The company’s revenue for the quarter was down 5.5% compared to the same quarter last year.
Here are the key takeaways from Capri’s conference call:
- Capri raised its fiscal 2027 outlook, now expecting approximately $3.42 billion in revenue, $175 million in operating income, and diluted EPS of $2.20, representing 50% and 45% growth, respectively, over the prior year.
- Second-quarter results exceeded expectations, with revenue of $809 million down 5.5% year over year but operating income up 55% and EPS improving to $0.42 from a $0.03 loss; gross margin expanded 230 basis points to 63.3% on stronger full-price sell-through and lower tariffs.
- Michael Kors showed improving momentum as new products such as the Hamilton Soft handbag, Jennings loafer, and Piper Flex ballet flat generated strong full-price demand; management expects sequential improvement in Q3 and a return to revenue growth in Q4.
- Jimmy Choo delivered a second consecutive quarter of double-digit growth, with Q2 revenue rising 11.5% to $146 million, supported by strength in accessories and footwear; the company continues to expect the brand to return to profitability in fiscal 2027.
- The recovery remains exposed to execution risks, including Michael Kors inventory delays that reduced Q2 revenue by roughly $50 million, continued weakness in Asia, foreign-currency headwinds, and potentially higher tariffs in the second half.
Capri Price Performance
CPRI traded up $2.46 during trading on Friday, hitting $18.52. 9,812,166 shares of the company traded hands, compared to its average volume of 3,107,418. The company has a market cap of $2.11 billion, a PE ratio of 14.25, a P/E/G ratio of 0.34 and a beta of 1.35. Capri has a 1 year low of $12.40 and a 1 year high of $28.26. The stock’s 50-day simple moving average is $14.62 and its two-hundred day simple moving average is $17.91. The company has a current ratio of 1.19, a quick ratio of 0.54 and a debt-to-equity ratio of 2.27.
Analyst Upgrades and Downgrades
Several brokerages recently commented on CPRI. BTIG Research cut their price objective on Capri from $30.00 to $25.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Weiss Ratings reissued a “sell (d)” rating on shares of Capri in a research report on Tuesday, August 25th. Barclays cut their price target on Capri from $20.00 to $19.00 and set an “overweight” rating for the company in a research note on Thursday, August 6th. UBS Group reduced their price target on shares of Capri from $20.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. Finally, Wall Street Zen raised Capri from a “hold” rating to a “buy” rating in a report on Saturday, September 5th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Capri has a consensus rating of “Hold” and an average price target of $21.80.
View Our Latest Stock Report on Capri
Capri News Roundup
Here are the key news stories impacting Capri this week:
- Positive Sentiment: Capri reported quarterly adjusted earnings of $0.42 per share, well above the $0.21 analyst consensus and sharply ahead of the $0.03 loss recorded a year earlier. Revenue of $809 million also exceeded estimates of $786.55 million. Capri Holdings Q2 Earnings and Revenues Top Estimates
- Positive Sentiment: Profitability improved substantially: net income reached $27 million versus a $34 million loss in the prior-year quarter, while gross margin expanded to 63.3% from 61.0%. Operating income also returned to positive territory. Capri Reports Revenue and Quarterly Net Income
- Positive Sentiment: Management raised its fiscal 2027 outlook, expecting approximately $3.42 billion in adjusted revenue. Capri also repurchased about 10.3 million shares for $150 million, supporting per-share results and signaling confidence in the recovery. Capri Holdings Fiscal 2027 Second-Quarter Earnings Presentation
- Positive Sentiment: Jimmy Choo was a notable bright spot, with revenue increasing 11.5% to $146 million, partially offsetting weakness elsewhere in the portfolio.
- Negative Sentiment: Total revenue still declined 5.5% year over year, and Michael Kors revenue fell 8.6% to $663 million, highlighting ongoing brand and demand challenges. Capri also ended the quarter with $461 million of borrowings and $125 million in cash. Capri Holdings Key Second-Quarter Metrics
About Capri
Capri Holdings Limited (NYSE: CPRI) is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands.
Capri’s principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances.
The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels.
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