Capri (NYSE:CPRI) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Capri Holdings Limited (NYSE:CPRI) experienced a significant share price increase, gapping up from $18.20 to $20.60 after reporting $0.50 earnings per share, exceeding analysts' expectations by $0.37.
• The company's quarterly revenue declined by 6.0% compared to the same period last year, indicating challenges despite the earnings beat.
• Research firms have issued mixed ratings on Capri, with consensus ratings of "Hold" and a target price averaging $22.75, alongside a notable shift with at least one analyst downgrading the stock to "sell."

Capri Holdings Limited (NYSE:CPRI - Get Free Report) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $18.20, but opened at $20.60. Capri shares last traded at $19.92, with a volume of 2,969,280 shares changing hands.

The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.37. The business had revenue of $797.00 million during the quarter, compared to analysts' expectations of $773.18 million. Capri had a negative net margin of 26.73% and a negative return on equity of 53.50%. The business's revenue was down 6.0% on a year-over-year basis. During the same period last year, the firm posted $0.04 earnings per share.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Wall Street Zen cut shares of Capri from a "hold" rating to a "sell" rating in a report on Sunday, July 13th. UBS Group increased their target price on shares of Capri from $18.00 to $23.00 and gave the company a "neutral" rating in a research note on Thursday. Robert W. Baird cut their target price on shares of Capri from $26.00 to $18.00 and set a "neutral" rating for the company in a research note on Friday, April 11th. Wells Fargo & Company cut their target price on shares of Capri from $30.00 to $25.00 and set an "overweight" rating for the company in a research note on Friday, April 11th. Finally, JPMorgan Chase & Co. increased their target price on shares of Capri from $18.00 to $21.00 and gave the company a "neutral" rating in a research note on Monday, July 28th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $23.33.

Institutional Investors Weigh In On Capri

Hedge funds have recently made changes to their positions in the company. Farther Finance Advisors LLC lifted its position in shares of Capri by 758.1% in the 1st quarter. Farther Finance Advisors LLC now owns 1,433 shares of the company's stock valued at $28,000 after acquiring an additional 1,266 shares in the last quarter. Banque Cantonale Vaudoise purchased a new stake in shares of Capri in the 1st quarter valued at approximately $29,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Capri in the 1st quarter valued at approximately $30,000. UMB Bank n.a. lifted its position in shares of Capri by 134.9% in the 1st quarter. UMB Bank n.a. now owns 1,776 shares of the company's stock valued at $35,000 after acquiring an additional 1,020 shares in the last quarter. Finally, CWM LLC lifted its position in Capri by 37.2% in the 2nd quarter. CWM LLC now owns 2,360 shares of the company's stock worth $42,000 after buying an additional 640 shares in the last quarter. Hedge funds and other institutional investors own 84.34% of the company's stock.

Capri Trading Down 5.1%

The company has a current ratio of 1.17, a quick ratio of 0.49 and a debt-to-equity ratio of 3.97. The company has a market cap of $2.33 billion, a PE ratio of -2.10, a P/E/G ratio of 0.45 and a beta of 1.72. The business's 50-day simple moving average is $18.30 and its 200-day simple moving average is $18.83.

Capri Company Profile

Capri Holdings Limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, and Asia. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, accessories, footwear, handbags, scarves and belts, small leather goods, eyewear, watches, jewelry, fragrances, and home furnishings through a distribution network, including boutiques, department, and specialty stores, as well as through e-commerce sites.