Capri (NYSE:CPRI) Issues Quarterly Earnings Results, Beats Estimates By $0.27 EPS

Capri (NYSE:CPRI) issued its earnings results on Wednesday. The company reported $0.67 earnings per share for the quarter, beating analysts’ consensus estimates of $0.40 by $0.27, FiscalAI reports. The firm had revenue of $769.00 million for the quarter, compared to analyst estimates of $756.25 million. Capri had a net margin of 3.94% and a return on equity of 664.22%. The company’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter last year, the business posted $0.50 earnings per share. Capri updated its Q2 2027 guidance to 0.200-0.200 EPS and its FY 2027 guidance to 2.150-2.150 EPS.

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

• First-quarter profitability exceeded expectations: Revenue declined 3.5% to $769 million, but operating income rose approximately 40%, operating margin expanded to 3.6%, and adjusted EPS increased about 30% to $0.67.
• Capri lowered its fiscal 2027 revenue outlook to approximately $3.4 billion, citing delayed Michael Kors inventory receipts, weaker EMEA trends, lower tourism, and foreign-exchange headwinds. Second-quarter revenue is expected to be about $780 million, with EPS of approximately $0.20.
• Despite the revenue reduction, management maintained its fiscal 2027 EPS outlook of approximately $2.15, representing 40% growth, through $70 million of targeted operating-expense reductions while protecting marketing, store renovation, digital, and IT investments.
• Jimmy Choo continued to gain momentum, with first-quarter revenue up 10.5% across regions and channels. Growth in accessories, casual footwear, and North American wholesale is expected to support the brand’s return to profitability in fiscal 2027.
• Capri ended the quarter with net debt of $224 million versus approximately $1.5 billion a year earlier, repurchased about $50 million of shares, and retained $871 million of buyback authorization. Management also cited higher full-price sell-throughs, rising average unit retail values, and gross-margin expansion as evidence of improving sales quality.

Capri Trading Down 3.7%

Shares of CPRI stock traded down $0.61 during mid-day trading on Wednesday, hitting $15.91. The company’s stock had a trading volume of 6,733,611 shares, compared to its average volume of 3,451,989. The company has a market cap of $1.83 billion, a PE ratio of 13.96, a P/E/G ratio of 0.30 and a beta of 1.41. The company has a debt-to-equity ratio of 4.08, a quick ratio of 0.60 and a current ratio of 1.21. The company’s fifty day simple moving average is $18.16 and its 200-day simple moving average is $19.21. Capri has a 52 week low of $15.19 and a 52 week high of $28.26.

Insider Buying and Selling

In other Capri news, Director Stephen F. Reitman sold 17,981 shares of Capri stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $19.42, for a total value of $349,191.02. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 2.60% of the stock is owned by corporate insiders.

Institutional Trading of Capri

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC acquired a new position in shares of Capri during the fourth quarter valued at about $201,000. Pacer Advisors Inc. boosted its position in shares of Capri by 136.5% during the fourth quarter. Pacer Advisors Inc. now owns 37,099 shares of the company’s stock valued at $905,000 after buying an additional 21,410 shares during the last quarter. Empowered Funds LLC boosted its position in shares of Capri by 3.4% during the fourth quarter. Empowered Funds LLC now owns 16,580 shares of the company’s stock valued at $405,000 after buying an additional 550 shares during the last quarter. XTX Topco Ltd grew its holdings in Capri by 245.8% during the fourth quarter. XTX Topco Ltd now owns 57,907 shares of the company’s stock worth $1,413,000 after buying an additional 41,159 shares in the last quarter. Finally, SummitTX Capital L.P. raised its position in Capri by 80.7% in the 4th quarter. SummitTX Capital L.P. now owns 176,537 shares of the company’s stock valued at $4,308,000 after buying an additional 78,852 shares during the last quarter. 84.34% of the stock is owned by institutional investors.

Key Capri News

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri reported fiscal Q1 2027 adjusted earnings of $0.67 per share, exceeding the $0.40 consensus estimate and improving from $0.50 a year earlier. Revenue of $769 million also topped expectations of approximately $756 million. Capri Holdings Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Full-year EPS guidance of $2.15 is modestly above the roughly $2.13 analyst consensus, indicating management still expects profitability to hold up despite near-term sales challenges. Capri Holdings Announces First Quarter Fiscal 2027 Results

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on CPRI shares. BTIG Research restated a “buy” rating and set a $30.00 price objective on shares of Capri in a research report on Thursday, May 28th. Bank of America dropped their price objective on shares of Capri from $23.00 to $20.00 and set a “neutral” rating for the company in a report on Thursday, May 28th. TD Cowen reduced their target price on shares of Capri from $26.00 to $20.00 and set a “hold” rating on the stock in a report on Wednesday, July 29th. Robert W. Baird decreased their price target on shares of Capri from $26.00 to $24.00 and set an “outperform” rating for the company in a research report on Monday, July 27th. Finally, UBS Group cut their price target on shares of Capri from $22.00 to $20.00 and set a “neutral” rating on the stock in a report on Thursday, May 28th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $23.33.

About Capri

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.