Capri Holdings Q1 profit beats on Jimmy Choo growth
Capri Holdings Q1 profit beats on Jimmy Choo growth
Overview
Global fashion luxury group's fiscal Q1 revenue fell 3.5% yr/yr, beating analyst expectations
Adjusted EPS and adjusted net income for fiscal Q1 beat analyst expectations
Company repurchased $50 mln of shares in fiscal Q1
Outlook
Capri Holdings now sees fiscal 2027 revenue of about $3.4 bln, down from prior view
Company maintains fiscal 2027 EPS outlook at about $2.15 despite lower revenue forecast
Capri Holdings expects Q2 revenue of about $780 mln, citing inventory delays and softer EMEA trends
Result Drivers
GROSS MARGIN IMPROVEMENT - Co said Q1 gross margin rose 200 basis points, driven by higher full-price sell-throughs and lower tariff rates
MICHAEL KORS DECLINE - Co attributed Michael Kors revenue decline partly to earlier timing of wholesale shipments and expense deleverage on lower revenue
JIMMY CHOO GROWTH - Jimmy Choo revenue rose 10.5% yr/yr, with improved operating margin driven by expense leverage on higher revenue
Company press release: ID:nBw9wg4vra
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $769 mln | $752.68 mln (14 Analysts) |
Q1 Adjusted EPS | Beat | $0.67 | $0.40 (14 Analysts) |
Q1 EPS |
| $0.60 |
|
Q1 Adjusted Net Income | Beat | $76 mln | $46.65 mln (13 Analysts) |
Q1 Net Income |
| $70 mln |
|
Q1 Adjusted Operating Income | Beat | $28 mln | $10.64 mln (14 Analysts) |
Q1 Adjusted Operating Margin |
| 3.60% |
|
Q1 Operating Income |
| $17 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Capri Holdings Ltd is $21.00, about 27.1% above its August 4 closing price of $16.52
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Aug 4 - Hugo Boss beats Q2 profit estimates, maintains annual guidance
Aug 4 - Interparfums Q2 profit misses estimates as higher expenses weighed on margins
Aug 4 - Revolve Q2 sales beat analyst estimates as active customer growth reaches highest rate in nearly 3 years
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)