Capri (NYSE:CPRI) Shares Up 9.6% After Better-Than-Expected Earnings

Key Points

• Capri shares rose 9.6% after the company reported quarterly EPS of $0.42, beating the $0.21 consensus estimate, while revenue of $809 million exceeded expectations of $786.55 million.
• Despite the earnings beat, quarterly revenue declined 5.5% year over year. Analysts maintain a consensus “Hold” rating with an average price target of $21.93.
• Institutional investors own 84.34% of Capri, with several hedge funds increasing their positions during the first quarter.

Capri Holdings Limited (NYSE:CPRI - Get Free Report)'s stock price traded up 9.6% on Monday following a better than expected earnings announcement. The stock traded as high as $20.53 and last traded at $20.4690. Approximately 2,539,026 shares changed hands during trading, a decline of 29% from the average daily volume of 3,569,309 shares. The stock had previously closed at $18.68.

The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.21. 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 6.12% and a return on equity of 242.96%. The firm's revenue for the quarter was down 5.5% compared to the same quarter last year. During the same period last year, the company earned ($0.03) EPS.

Analyst Ratings Changes

Several brokerages have weighed in on CPRI. Telsey Advisory Group cut their target price on Capri from $21.00 to $18.00 and set a "market perform" rating on the stock in a research note on Thursday, August 6th. Raymond James Financial upgraded shares of Capri from an "outperform" rating to a "strong-buy" rating and set a $20.00 price target on the stock in a report on Friday, October 16th. JPMorgan Chase & Co. decreased their target price on Capri from $29.00 to $22.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. UBS Group dropped their price objective on shares of Capri from $20.00 to $17.00 and set a "neutral" rating for the company in a research note on Thursday, August 6th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Capri in a research report on Tuesday, August 25th. Two research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $21.93.

Hedge Funds Weigh In On Capri

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Cooper Creek Partners Management LLC bought a new position in Capri during the 1st quarter valued at $23,784,000. Segall Bryant & Hamill LLC lifted its holdings in shares of Capri by 92.6% in the 1st quarter. Segall Bryant & Hamill LLC now owns 2,734,735 shares of the company's stock worth $48,186,000 after acquiring an additional 1,314,611 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Capri by 34.7% in the first quarter. Dimensional Fund Advisors LP now owns 2,165,618 shares of the company's stock worth $38,154,000 after buying an additional 557,955 shares during the period. Renaissance Technologies LLC purchased a new stake in Capri in the first quarter worth $7,695,000. Finally, SummitTX Capital L.P. grew its holdings in shares of Capri by 222.3% during the 1st quarter. SummitTX Capital L.P. now owns 569,054 shares of the company's stock worth $10,027,000 after acquiring an additional 392,517 shares during the period. Institutional investors and hedge funds own 84.34% of the company's stock.

Capri Stock Up 9.6%

The stock's 50 day simple moving average is $14.62 and its two-hundred day simple moving average is $17.91. The company has a debt-to-equity ratio of 6.31, a current ratio of 1.18 and a quick ratio of 0.50. The firm has a market cap of $2.33 billion, a P/E ratio of 11.57, a P/E/G ratio of 0.38 and a beta of 1.27.

About Capri

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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