Capri (NYSE:CPRI) Announces Earnings Results

Capri (NYSE:CPRI) released its earnings results on Friday. The company reported $0.42 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $809.00 million for the quarter, compared to the consensus estimate of $786.55 million. During the same quarter last year, the business posted ($0.03) EPS. Capri’s quarterly revenue 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 Stock Performance

Shares of CPRI traded up $2.46 during trading hours on Friday, reaching $18.52. 9,812,166 shares of the company traded hands, compared to its average volume of 3,107,418. The stock’s fifty day moving average is $14.62 and its 200 day moving average is $17.91. The stock has a market cap of $2.11 billion, a P/E ratio of 14.25, a price-to-earnings-growth ratio of 0.34 and a beta of 1.35. The company has a debt-to-equity ratio of 2.27, a quick ratio of 0.54 and a current ratio of 1.19. Capri has a 1-year low of $12.40 and a 1-year high of $28.26.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. The Goldman Sachs Group reduced their target price on shares of Capri from $21.00 to $18.00 and set a “neutral” rating for the company in a report on Thursday, August 6th. Telsey Advisory Group dropped their price target on Capri from $21.00 to $18.00 and set a “market perform” rating on the stock in a report on Thursday, August 6th. Barclays cut their price objective on Capri from $20.00 to $19.00 and set an “overweight” rating for the company in a research report on Thursday, August 6th. Weiss Ratings restated a “sell (d)” rating on shares of Capri in a report on Tuesday, August 25th. Finally, Raymond James Financial raised Capri from an “outperform” rating to a “strong-buy” rating and set a $20.00 target price on the stock in a research report on Friday, October 16th. Two analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $21.80.

Capri News Summary

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

Capri Company Profile

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.