Capri (NYSE:CPRI) Posts Earnings Results, Beats Estimates By $0.03 EPS

Capri (NYSE:CPRI) posted its quarterly earnings results on Tuesday. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.78 by $0.03, FiscalAI reports. The business had revenue of $1.03 billion during the quarter, compared to analysts’ expectations of $999.84 million. Capri had a negative net margin of 13.57% and a negative return on equity of 430.23%. The firm’s quarterly revenue was down 4.0% compared to the same quarter last year. During the same period last year, the company posted $0.63 earnings per share. Capri updated its FY 2026 guidance to 1.300-1.400 EPS.

Here are the key takeaways from Capri’s conference call:

• Completed the sale of Versace for about $1.4 billion in cash and used proceeds to sharply reduce leverage, leaving Capri with approximately $80 million net debt and the flexibility to invest in stores, digital, and a $1 billion share repurchase program commencing in FY27.
• Q3 revenue declined 4% to $1.025 billion while diluted EPS rose ~30% to $0.81; management narrowed FY26 guidance (revenue $3.45–3.475B; EPS $1.30–1.40) and reported underlying gross margin expansion of 70bps excluding tariffs.
• Michael Kors revenue fell 5.6% as management pursues deliberate repositioning—reduced promotions, a new pricing architecture, influencer-led storytelling and a three‑year plan to renovate ~50% of stores—which is driving improved full‑price sell‑throughs, higher AURs and margin improvement but creating near‑term top‑line pressure.
• Jimmy Choo showed momentum with Q3 revenue up 5%, double‑digit wholesale growth, sequential retail improvement and gross margin expansion, and management expects Jimmy Choo to scale toward an ~$800 million business over the next few years.
• Tariff pressures (about a ~50bps headwind in Q3) and sales mix weighed on consolidated operating margin (7.7% vs. 9.2% prior year) and on Michael Kors margins, although management says sourcing efficiencies and targeted price increases should largely mitigate the tariff impact by FY27.

Capri Trading Down 6.7%

Shares of Capri stock traded down $1.38 during trading on Thursday, reaching $19.37. 982,670 shares of the company were exchanged, compared to its average volume of 3,245,638. The business has a 50-day moving average price of $24.99 and a 200-day moving average price of $22.37. The firm has a market capitalization of $2.31 billion, a price-to-earnings ratio of -4.57, a P/E/G ratio of 0.39 and a beta of 1.45. The company has a quick ratio of 0.69, a current ratio of 1.14 and a debt-to-equity ratio of 2.07. Capri has a twelve month low of $11.86 and a twelve month high of $28.26.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on CPRI shares. Telsey Advisory Group restated a “market perform” rating and set a $23.00 target price on shares of Capri in a research note on Tuesday. Guggenheim upgraded Capri to a “strong-buy” rating in a report on Wednesday, December 10th. The Goldman Sachs Group lowered their price objective on shares of Capri from $27.00 to $24.00 and set a “neutral” rating on the stock in a research note on Wednesday. Raymond James Financial raised shares of Capri from a “market perform” rating to an “outperform” rating and set a $25.00 target price on the stock in a research report on Tuesday, October 21st. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $24.00 target price on shares of Capri in a research note on Tuesday, January 6th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $26.21.

Insider Activity

In related news, CFO Rajal Mehta sold 10,000 shares of the stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $25.96, for a total value of $259,600.00. Following the sale, the chief financial officer directly owned 741 shares in the company, valued at $19,236.36. This trade represents a 93.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Capri

Several institutional investors and hedge funds have recently added to or reduced their stakes in CPRI. Quantbot Technologies LP purchased a new position in shares of Capri in the second quarter worth about $39,000. Headlands Technologies LLC purchased a new stake in Capri in the second quarter worth $139,000. State of Wyoming bought a new position in Capri during the 2nd quarter valued at about $173,000. Bayesian Capital Management LP bought a new stake in shares of Capri in the second quarter worth $202,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Capri by 13.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 11,034 shares of the company’s stock worth $218,000 after purchasing an additional 1,313 shares during the last quarter. Institutional investors own 84.34% of the company’s stock.

Capri Company Profile

Capri Holdings Limited (NYSE: CPRI) is a global luxury fashion company that designs, markets and distributes a range of premium lifestyle products. The company’s principal brands—Michael Kors, Versace and Jimmy Choo—offer handbags, ready-to-wear apparel, footwear, watches, jewelry, fragrance and other accessories. Capri Holdings combines in-house design talent with international sourcing, manufacturing and retail operations to deliver collections that reflect each brand’s distinct heritage and aesthetic vision.

Formed in 2018 through the rebranding of Michael Kors Holdings following the acquisition of Versace, Capri has since integrated Jimmy Choo into its portfolio.