Capri (NYSE:CPRI) Issues Quarterly Earnings Results, Beats Estimates By $0.27 EPS

Capri (NYSE:CPRI) issued its quarterly earnings data on Wednesday. The company reported $0.67 EPS for the quarter, topping the consensus estimate of $0.40 by $0.27, FiscalAI reports. Capri had a return on equity of 664.22% and a net margin of 3.94%.During the same quarter last year, the business earned $0.50 earnings per share. The firm’s revenue was down 3.5% compared to the same quarter last year. Capri updated its Q2 2027 guidance to 0.200-0.200 EPS and its FY 2027 guidance to 2.150-2.150 EPS.

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

• First-quarter profitability exceeded expectations: Revenue declined 3.5% to $769 million, but operating income rose approximately 40%, operating margin expanded to 3.6%, and adjusted EPS increased about 30% to $0.67.
• Capri lowered its fiscal 2027 revenue outlook to approximately $3.4 billion, citing delayed Michael Kors inventory receipts, weaker EMEA trends, lower tourism, and foreign-exchange headwinds. Second-quarter revenue is expected to be about $780 million, with EPS of approximately $0.20.
• Despite the revenue reduction, management maintained its fiscal 2027 EPS outlook of approximately $2.15, representing 40% growth, through $70 million of targeted operating-expense reductions while protecting marketing, store renovation, digital, and IT investments.
• Jimmy Choo continued to gain momentum, with first-quarter revenue up 10.5% across regions and channels. Growth in accessories, casual footwear, and North American wholesale is expected to support the brand’s return to profitability in fiscal 2027.
• Capri ended the quarter with net debt of $224 million versus approximately $1.5 billion a year earlier, repurchased about $50 million of shares, and retained $871 million of buyback authorization. Management also cited higher full-price sell-throughs, rising average unit retail values, and gross-margin expansion as evidence of improving sales quality.

Capri Stock Performance

Shares of NYSE:CPRI traded down $0.65 during midday trading on Wednesday, hitting $15.87. The company had a trading volume of 4,675,910 shares, compared to its average volume of 3,155,284. The company has a debt-to-equity ratio of 4.08, a current ratio of 1.21 and a quick ratio of 0.60. The company has a fifty day moving average of $18.21 and a two-hundred day moving average of $19.28. The company has a market cap of $1.82 billion, a price-to-earnings ratio of 13.89, a PEG ratio of 0.30 and a beta of 1.41. Capri has a 12-month low of $15.19 and a 12-month high of $28.26.

Analysts Set New Price Targets

A number of brokerages have commented on CPRI. Raymond James Financial reiterated an “outperform” rating and set a $22.00 price target on shares of Capri in a research report on Thursday, May 28th. UBS Group lowered their price target on Capri from $22.00 to $20.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. Telsey Advisory Group dropped their target price on shares of Capri from $23.00 to $21.00 and set a “market perform” rating for the company in a research report on Thursday, May 28th. JPMorgan Chase & Co. dropped their price target on Capri from $29.00 to $22.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, TD Cowen decreased their target price on shares of Capri from $26.00 to $20.00 and set a “hold” rating for the company in a research note on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $23.33.

Trending Headlines about Capri

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri reported fiscal Q1 2027 earnings of $0.67 per share, well above the $0.40 analyst consensus and up from $0.50 a year earlier. Revenue also exceeded expectations, providing a near-term earnings positive. Capri Holdings Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: JPMorgan maintained an Overweight rating, although it lowered its price target from $29 to $22. The revised target still implied substantial upside based on the reported share price. JPMorgan Capri Price Target
• Neutral Sentiment: Capri’s Q1 revenue declined 3.5% year over year, suggesting that the earnings beat was not accompanied by broad-based sales growth. Analysts are also watching operating metrics across the company’s luxury brands. Key Metrics from Capri Q1 Earnings
• Negative Sentiment: Capri issued sharply weaker fiscal Q2 guidance: EPS of $0.20 versus the $0.45 consensus and revenue of $780 million versus expectations of $857 million. Full-year revenue guidance of approximately $3.4 billion was also below the $3.5 billion consensus, overshadowing the quarterly profit beat.
• Negative Sentiment: Management cited inventory delays and softer demand for Michael Kors handbags and accessories in some markets. Because Michael Kors is Capri’s largest brand, the weakness raises concerns about near-term sales momentum, inventory management and the company’s turnaround prospects. Capri Cuts Annual Revenue Forecast on Michael Kors Weakness

Insider Buying and Selling at Capri

In other Capri news, Director Stephen F. Reitman sold 17,981 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $19.42, for a total value of $349,191.02. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership bought a new position in shares of Capri during the fourth quarter worth $53,759,000. State Street Corp increased its position in shares of Capri by 19.3% during the 2nd quarter. State Street Corp now owns 4,479,231 shares of the company’s stock valued at $79,282,000 after purchasing an additional 724,967 shares during the last quarter. Rubric Capital Management LP purchased a new stake in shares of Capri in the fourth quarter valued at $16,470,000. Jain Global LLC bought a new stake in Capri in the fourth quarter worth about $11,491,000. Finally, Bank of America Corp DE boosted its holdings in Capri by 125.2% during the 2nd quarter. Bank of America Corp DE now owns 693,849 shares of the company’s stock valued at $12,281,000 after acquiring an additional 385,785 shares during the period. 84.34% of the stock is owned by hedge funds and other institutional investors.

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.