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

Capri (NYSE:CPRI) posted its earnings results on Wednesday. The company reported $0.67 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.27, FiscalAI reports. Capri had a net margin of 3.94% and a return on equity of 664.22%. The company’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.50 earnings per share. 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 Trading Down 3.9%

NYSE CPRI traded down $0.65 on Wednesday, hitting $15.87. The company’s stock had a trading volume of 4,675,910 shares, compared to its average volume of 3,155,284. The firm has a market cap of $1.82 billion, a PE ratio of 13.89, a PEG ratio of 0.30 and a beta of 1.41. The company has a quick ratio of 0.60, a current ratio of 1.21 and a debt-to-equity ratio of 4.08. Capri has a 1-year low of $15.19 and a 1-year high of $28.26. The company’s 50-day moving average is $18.21 and its 200 day moving average is $19.28.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on CPRI shares. Raymond James Financial reiterated an “outperform” rating and set a $22.00 target price on shares of Capri in a research note on Thursday, May 28th. TD Cowen dropped their price objective 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. Weiss Ratings upgraded shares of Capri from a “sell (e+)” rating to a “sell (d)” rating in a research report on Thursday, May 28th. Wells Fargo & Company lowered their price objective on Capri from $20.00 to $16.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 15th. Finally, Barclays decreased their price target on Capri from $24.00 to $20.00 and set an “overweight” rating on the stock in a research report on Thursday, July 16th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Capri has an average rating of “Hold” and an average target price of $23.33.

Key Headlines Impacting 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 related news, Director Stephen F. Reitman sold 17,981 shares of the business’s stock in a transaction 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 SEC, which is available at this hyperlink. 2.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Capri

A number of large investors have recently bought and sold shares of CPRI. Corient Private Wealth LLC bought a new stake in shares of Capri during the fourth quarter valued at approximately $201,000. Pacer Advisors Inc. grew its stake in Capri by 136.5% in the 4th quarter. Pacer Advisors Inc. now owns 37,099 shares of the company’s stock valued at $905,000 after purchasing an additional 21,410 shares during the period. Empowered Funds LLC increased its holdings in Capri by 3.4% during the fourth quarter. Empowered Funds LLC now owns 16,580 shares of the company’s stock worth $405,000 after buying an additional 550 shares during the last quarter. XTX Topco Ltd increased its stake in shares of Capri by 245.8% during the 4th quarter. XTX Topco Ltd now owns 57,907 shares of the company’s stock worth $1,413,000 after purchasing an additional 41,159 shares during the last quarter. Finally, SummitTX Capital L.P. raised its stake in shares of Capri by 80.7% in the fourth quarter. SummitTX Capital L.P. now owns 176,537 shares of the company’s stock valued at $4,308,000 after buying an additional 78,852 shares during the period. 84.34% of the stock is currently owned by institutional investors and hedge funds.

Capri Company Profile

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.