Capri (NYSE:CPRI) Posts Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Key Points

• Capri beat quarterly expectations, reporting EPS of $0.42 versus the $0.21 consensus and revenue of $809 million versus $786.55 million expected. Gross margin expanded to 63.3%, and the company returned to profitability despite revenue declining 5.5% year over year.
• Management raised its fiscal 2027 outlook to approximately $3.42 billion in revenue, $175 million in operating income and $2.20 in diluted EPS. Jimmy Choo delivered 11.5% revenue growth, while Michael Kors showed improving product momentum.
• The recovery still faces risks, including an 8.6% decline in Michael Kors revenue, inventory delays that reduced quarterly revenue by about $50 million, weakness in Asia, foreign-exchange pressures and potential tariff increases.

Capri (NYSE:CPRI - Get Free Report) issued its earnings results on Friday. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21, FiscalAI reports. The company had revenue of $809.00 million for the quarter, compared to analysts' expectations of $786.55 million. Capri had a net margin of 4.44% and a return on equity of 297.36%. The firm's quarterly revenue was down 5.5% on a year-over-year basis. During the same period in the prior year, the business earned ($0.03) EPS.

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

• Capri raised its fiscal 2027 outlook, now expecting approximately $3.42 billion in revenue, $175 million in operating income, and diluted EPS of $2.20, representing 50% and 45% growth, respectively, over the prior year.
• Second-quarter results exceeded expectations, with revenue of $809 million down 5.5% year over year but operating income up 55% and EPS improving to $0.42 from a $0.03 loss; gross margin expanded 230 basis points to 63.3% on stronger full-price sell-through and lower tariffs.
• Michael Kors showed improving momentum as new products such as the Hamilton Soft handbag, Jennings loafer, and Piper Flex ballet flat generated strong full-price demand; management expects sequential improvement in Q3 and a return to revenue growth in Q4.
• Jimmy Choo delivered a second consecutive quarter of double-digit growth, with Q2 revenue rising 11.5% to $146 million, supported by strength in accessories and footwear; the company continues to expect the brand to return to profitability in fiscal 2027.
• The recovery remains exposed to execution risks, including Michael Kors inventory delays that reduced Q2 revenue by roughly $50 million, continued weakness in Asia, foreign-currency headwinds, and potentially higher tariffs in the second half.

Capri Stock Up 15.3%

Shares of CPRI traded up $2.46 during mid-day trading on Friday, hitting $18.52. 9,812,166 shares of the company traded hands, compared to its average volume of 3,107,418. Capri has a 1-year low of $12.40 and a 1-year high of $28.26. The company has a quick ratio of 0.54, a current ratio of 1.19 and a debt-to-equity ratio of 2.27. The company has a market capitalization of $2.11 billion, a PE ratio of 14.25, a price-to-earnings-growth ratio of 0.34 and a beta of 1.35. The business has a 50 day moving average of $14.62 and a 200 day moving average of $17.91.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the company. Telsey Advisory Group cut their price target on Capri from $21.00 to $18.00 and set a "market perform" rating on the stock in a report on Thursday, August 6th. Wells Fargo & Company dropped their price objective on Capri from $20.00 to $16.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 15th. The Goldman Sachs Group lowered their price target on shares of Capri from $21.00 to $18.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. TD Cowen started coverage on shares of Capri in a research report on Friday. They issued a "hold" rating on the stock. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Capri in a research note on Tuesday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Capri has an average rating of "Hold" and a consensus price target of $21.80.

Trending Headlines about Capri

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri reported quarterly adjusted earnings of $0.42 per share, well above the $0.21 analyst consensus and sharply ahead of the $0.03 loss recorded a year earlier. Revenue of $809 million also exceeded estimates of $786.55 million. Capri Holdings Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved substantially: net income reached $27 million versus a $34 million loss in the prior-year quarter, while gross margin expanded to 63.3% from 61.0%. Operating income also returned to positive territory. Capri Reports Revenue and Quarterly Net Income
• Positive Sentiment: Management raised its fiscal 2027 outlook, expecting approximately $3.42 billion in adjusted revenue. Capri also repurchased about 10.3 million shares for $150 million, supporting per-share results and signaling confidence in the recovery. Capri Holdings Fiscal 2027 Second-Quarter Earnings Presentation
• Positive Sentiment: Jimmy Choo was a notable bright spot, with revenue increasing 11.5% to $146 million, partially offsetting weakness elsewhere in the portfolio.
• Negative Sentiment: Total revenue still declined 5.5% year over year, and Michael Kors revenue fell 8.6% to $663 million, highlighting ongoing brand and demand challenges. Capri also ended the quarter with $461 million of borrowings and $125 million in cash. Capri Holdings Key Second-Quarter Metrics

Capri Company Profile

Capri Holdings Limited NYSE: CPRI is a global fashion and luxury goods company headquartered in London. The company designs, develops, markets and distributes luxury apparel, footwear, handbags, accessories, watches, jewelry and fragrances through its portfolio of fashion brands.

Capri's principal brands are Michael Kors, Versace and Jimmy Choo. Michael Kors offers a broad range of fashion and lifestyle products, including handbags, footwear, apparel, watches and accessories. Versace is known for luxury clothing, accessories, footwear, home products and fragrances, while Jimmy Choo specializes in luxury footwear, handbags, accessories and fragrances.

The company sells its products through directly operated retail stores, e-commerce platforms, wholesale partners, department stores, specialty retailers and other distribution channels.

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