Capri (NYSE:CPRI) Releases Quarterly Earnings Results, Beats Expectations By $0.27 EPS

Capri (NYSE:CPRI) issued its quarterly earnings data on Wednesday. The company reported $0.67 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.27, FiscalAI reports. Capri had a return on equity of 664.22% and a net margin of 3.94%.The firm had revenue of $769.00 million for the quarter, compared to analyst estimates of $756.25 million. During the same period last year, the company earned $0.50 EPS. The business’s quarterly 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 Down 6.3%

NYSE:CPRI traded down $1.01 on Thursday, reaching $15.01. 4,021,427 shares of the stock traded hands, compared to its average volume of 3,171,855. The company has a market capitalization of $1.72 billion, a price-to-earnings ratio of 13.17, a PEG ratio of 0.30 and a beta of 1.41. The company has a current ratio of 1.21, a quick ratio of 0.60 and a debt-to-equity ratio of 4.08. Capri has a 12 month low of $14.94 and a 12 month high of $28.26. The company’s fifty day simple moving average is $18.16 and its 200 day simple moving average is $19.21.

Insider Activity

In other 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 2.60% of the company’s stock.

Hedge Funds Weigh In On Capri

A number of hedge funds have recently added to or reduced their stakes in CPRI. Quantbot Technologies LP bought a new position in Capri in the 2nd quarter valued at approximately $39,000. Headlands Technologies LLC purchased a new stake in Capri during the 2nd quarter valued at $139,000. State of Wyoming bought a new stake in shares of Capri in the 2nd quarter worth $173,000. Corient Private Wealth LLC bought a new stake in shares of Capri in the 4th quarter worth $201,000. Finally, Bayesian Capital Management LP purchased a new position in shares of Capri in the second quarter worth $202,000. 84.34% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several brokerages recently issued reports on CPRI. Telsey Advisory Group reduced their price target on shares of Capri from $21.00 to $18.00 and set a “market perform” rating on the stock in a research report on Thursday. The Goldman Sachs Group decreased their target price on Capri from $21.00 to $18.00 and set a “neutral” rating for the company in a research report on Thursday. UBS Group dropped their price target on Capri from $20.00 to $17.00 and set a “neutral” rating on the stock in a research report on Thursday. TD Cowen downgraded Capri from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $20.00 to $17.00 in a report on Thursday. Finally, Barclays lowered their price objective on Capri from $20.00 to $19.00 and set an “overweight” rating for the company in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $21.93.

More Capri News

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Capri reported fiscal Q1 2027 adjusted earnings of $0.67 per share, well above the $0.40 consensus estimate, while revenue of $769 million also exceeded expectations. Margin improvement and growth at Jimmy Choo helped offset weaker overall sales. Q1 earnings beat estimates
• Positive Sentiment: BTIG maintained a “buy” rating, although it lowered its price target from $30 to $25, leaving substantial implied upside based on the current trading level. BTIG price target update
• Neutral Sentiment: Analysts reduced their targets following the results: UBS cut its target to $17 from $20, Goldman Sachs to $18 from $21, and Telsey Advisory Group to $18 from $21. UBS and Goldman Sachs now rate the shares “neutral,” while Telsey rates them “market perform.” Analyst price target changes
• Negative Sentiment: Capri lowered its fiscal 2027 revenue outlook to approximately $3.4 billion, below the roughly $3.5 billion analyst consensus. Second-quarter revenue guidance of $780 million is also well below the $857 million consensus, while projected EPS of $0.20 trails expectations of $0.45. Capri cuts annual revenue forecast
• Negative Sentiment: The Michael Kors business remains the primary drag, with softer demand for handbags and accessories and inventory delays expected to pressure the second quarter. Revenue declined 3.5% year over year despite the earnings beat, reinforcing concerns about the recovery’s durability. Michael Kors weakness weighs on Capri

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.