Capri (NYSE:CPRI) Shares Gap Up Following Strong 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)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 for the quarter, topping the consensus estimate of $0.13 by $0.37. Capri had a negative net margin of 26.73% and a negative return on equity of 53.50%. The firm had revenue of $797.00 million for the quarter, compared to the consensus estimate of $773.18 million. During the same quarter in the prior year, the company posted $0.04 earnings per share. The business's revenue was down 6.0% on a year-over-year basis.

Wall Street Analyst Weigh In

CPRI has been the topic of several research reports. JPMorgan Chase & Co. upped their price objective on shares of Capri from $18.00 to $21.00 and gave the stock a "neutral" rating in a report on Monday, July 28th. Wall Street Zen upgraded shares of Capri from a "sell" rating to a "hold" rating in a report on Saturday. 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 report on Thursday. Finally, Telsey Advisory Group reiterated a "market perform" rating and issued a $22.00 target price (up previously from $20.00) on shares of Capri in a report on Wednesday. Nine investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, Capri has an average rating of "Hold" and a consensus price target of $23.33.

Hedge Funds Weigh In On Capri

Several institutional investors have recently added to or reduced their stakes in CPRI. LPL Financial LLC grew its position in Capri by 49.7% during the fourth quarter. LPL Financial LLC now owns 119,515 shares of the company's stock valued at $2,517,000 after buying an additional 39,685 shares during the period. Trexquant Investment LP bought a new position in Capri during the fourth quarter valued at about $269,000. Federated Hermes Inc. grew its position in Capri by 42.4% during the fourth quarter. Federated Hermes Inc. now owns 18,209 shares of the company's stock valued at $383,000 after buying an additional 5,420 shares during the period. FMR LLC grew its position in Capri by 249.4% during the fourth quarter. FMR LLC now owns 9,987,603 shares of the company's stock valued at $210,339,000 after buying an additional 7,129,123 shares during the period. Finally, Invesco Ltd. boosted its position in Capri by 67.2% during the fourth quarter. Invesco Ltd. now owns 374,928 shares of the company's stock worth $7,896,000 after purchasing an additional 150,752 shares during the period. Institutional investors own 84.34% of the company's stock.

Capri Price Performance

The company has a quick ratio of 0.49, a current ratio of 1.17 and a debt-to-equity ratio of 3.97. The stock has a market cap of $2.33 billion, a P/E ratio of -2.10, a price-to-earnings-growth ratio of 0.42 and a beta of 1.72. The business's 50-day simple moving average is $18.30 and its two-hundred day simple moving average is $18.79.

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.