Capri Holdings Q2 revenue beats; expects Q3 revenue of $975 mln to $1 bln

Capri Holdings

04/11/2025 11:55

Overview

Capri Holdings Q2 FY2026 revenue beats analyst expectations despite a 2.5% decrease

Adjusted EPS for Q2 misses analyst expectations

Company announces $1 bln share repurchase program, to begin in fiscal 2027

Outlook

Capri Holdings expects fiscal 2026 revenue of $3.375 bln to $3.45 bln

Company anticipates Q3 fiscal 2026 revenue of $975 mln to $1 bln

Michael Kors fiscal 2026 revenue expected at $2.8 bln to $2.875 bln

Result Drivers

STRATEGIC INITIATIVES - Co attributes exceeding expectations in revenue, gross margin, and operating income to strategic initiatives aimed at energizing fashion luxury houses

VERSACE SALE - Co expects Versace sale to close in fiscal Q3, using proceeds to repay debt and strengthen financial flexibility

TARIFF IMPACT - Tariffs negatively impacted gross margin by approximately 130 basis points

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$856 mln
$825.65 mln (11 Analysts)
Q2 Adjusted EPS
Miss
-$0.03
$0.13 (11 Analysts)
Q2 EPS
-$0.28
Q2 Adjusted Net Income
Miss
-$4 mln
$15.63 mln (10 Analysts)
Q2 Net Income
-$28 mln
Q2 Adjusted Operating Income
Beat
$20 mln
$10.41 mln (10 Analysts)
Q2 Adjusted Operating Margin
2.30%
Q2 Operating Income
-$12 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 1 "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 $23.00, about 9.9% above its November 3 closing price of $20.72

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw1Qrt5Ta

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(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.)