Capri (NYSE:CPRI) Shares Up 9.4% on Better-Than-Expected Earnings

Key Points

• Capri shares jumped 9.4% after the company reported better-than-expected quarterly results, with adjusted EPS of $0.22 versus $0.11 expected. The stock traded as high as $20.05 on heavier-than-average volume.
• Revenue came in below expectations at $796 million and fell 23.1% year over year, highlighting continued pressure on sales and margins despite the earnings beat. The company also posted a negative net margin and weak return on equity.
• Management’s outlook was mixed: Capri raised attention with FY2027 EPS guidance of $2.15, but Q1 revenue guidance came in below Wall Street estimates. Analyst views remain split, though BTIG reiterated a buy rating with a $30 target.

Capri Holdings Limited (NYSE:CPRI - Get Free Report) shares shot up 9.4% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $20.05 and last traded at $19.98. 3,349,374 shares were traded during mid-day trading, an increase of 10% from the average session volume of 3,038,348 shares. The stock had previously closed at $18.27.

The company reported $0.22 EPS for the quarter, topping analysts' consensus estimates of $0.11 by $0.11. Capri had a negative return on equity of 430.23% and a negative net margin of 13.57%.The business had revenue of $796.00 million during the quarter, compared to the consensus estimate of $800.04 million. During the same period in the previous year, the company posted ($4.90) earnings per share. The business's revenue for the quarter was down 23.1% on a year-over-year basis. Capri has set its FY 2027 guidance at 2.150-2.150 EPS and its Q1 2027 guidance at 0.400-0.400 EPS.

Key Capri News

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri beat earnings expectations, reporting adjusted EPS of $0.22 versus $0.11 expected, while also signaling FY2027 EPS of $2.15, above consensus. That helped support the stock despite softer revenue. Capri Holdings Limited Announces Fourth Quarter and Full Year Fiscal 2026 Results
• Positive Sentiment: BTIG Research reaffirmed its buy rating and kept a $30 price target, implying meaningful upside from current levels. BTIG Research reaffirms buy rating on Capri
• Positive Sentiment: Unusual options activity showed elevated call buying, suggesting some traders are positioning for a rebound after the earnings release.
• Neutral Sentiment: Telsey Advisory Group lowered its price target to $21 from $23 and kept a market perform rating, indicating limited near-term upside.
• Neutral Sentiment: Bank of America also cut its target to $20 from $23 and maintained a neutral rating, signaling a wait-and-see stance. Bank of America lowers Capri price target
• Neutral Sentiment: The company’s guidance was mixed: FY2027 EPS was above expectations, but Q1 revenue guidance came in below Wall Street estimates.
• Negative Sentiment: Revenue for the quarter fell 23.1% year over year, and the company’s sales missed estimates, underscoring ongoing demand pressure in parts of the business.
• Negative Sentiment: The stock was pressured after the earnings release as investors focused on weaker top-line performance and margin challenges. Capri Holdings reports mixed financial results for the fourth quarter

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on CPRI shares. Telsey Advisory Group cut their price objective on shares of Capri from $23.00 to $21.00 and set a "market perform" rating on the stock in a report on Thursday. Barclays reduced their price objective on Capri from $32.00 to $24.00 and set an "overweight" rating for the company in a research note on Wednesday, April 8th. BTIG Research reiterated a "buy" rating and issued a $30.00 price objective on shares of Capri in a research note on Thursday. Raymond James Financial reiterated an "outperform" rating and issued a $22.00 price objective on shares of Capri in a research note on Thursday. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Capri in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $24.93.

Insider Buying and Selling

In related news, CEO John D. Idol purchased 55,000 shares of the company's stock in a transaction on Wednesday, March 11th. The stock was bought at an average price of $17.98 per share, with a total value of $988,900.00. Following the completion of the transaction, the chief executive officer owned 2,257,645 shares of the company's stock, valued at approximately $40,592,457.10. This represents a 2.50% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.30% of the company's stock.

Institutional Trading of Capri

Large investors have recently made changes to their positions in the stock. Measured Wealth Private Client Group LLC boosted its stake in shares of Capri by 299.7% during the first quarter. Measured Wealth Private Client Group LLC now owns 1,523 shares of the company's stock valued at $27,000 after acquiring an additional 1,142 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new stake in shares of Capri during the third quarter valued at $39,000. Quantbot Technologies LP acquired a new stake in shares of Capri during the second quarter valued at $39,000. Hantz Financial Services Inc. boosted its stake in shares of Capri by 167.4% during the third quarter. Hantz Financial Services Inc. now owns 2,701 shares of the company's stock valued at $54,000 after acquiring an additional 1,691 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its stake in shares of Capri by 273.9% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,236 shares of the company's stock valued at $55,000 after acquiring an additional 1,638 shares during the last quarter. Institutional investors and hedge funds own 84.34% of the company's stock.

Capri Trading Up 9.7%

The company has a quick ratio of 0.52, a current ratio of 1.14 and a debt-to-equity ratio of 2.07. The firm has a market cap of $2.39 billion, a price-to-earnings ratio of -4.72, a price-to-earnings-growth ratio of 0.29 and a beta of 1.43. The business has a 50 day moving average of $18.77 and a 200 day moving average of $21.53.

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.

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