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

Capri (NYSE:CPRI) issued its quarterly earnings results on Wednesday. The company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.27, FiscalAI reports. Capri had a net margin of 4.44% and a return on equity of 297.36%. The firm had revenue of $769.00 million for the quarter, compared to analyst estimates of $757.61 million. During the same period in the previous year, the business earned $0.50 EPS. The company’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 CPRI stock traded up $0.30 during trading on Friday, reaching $15.30. 3,129,130 shares of the company’s stock traded hands, compared to its average volume of 3,182,886. Capri has a 1 year low of $14.78 and a 1 year high of $28.26. The company has a market capitalization of $1.76 billion, a P/E ratio of 11.82, a PEG ratio of 0.28 and a beta of 1.41. The company has a current ratio of 1.19, a quick ratio of 0.60 and a debt-to-equity ratio of 2.27. The firm’s 50-day moving average is $18.07 and its 200 day moving average is $19.15.

Key Capri News

Here are the key news stories impacting Capri this week:

• Positive Sentiment: Q1 earnings exceeded expectations. Capri reported adjusted EPS of $0.67, well above the $0.40 analyst consensus, while revenue of $769 million also topped estimates of $757.6 million. Margin gains and growth at Jimmy Choo provided support, although total revenue still declined year over year. CPRI Q1 Earnings Beat Estimates on Margin Gains, Jimmy Choo Growth
• Positive Sentiment: Some analysts still see upside. BTIG maintained a Buy rating despite cutting its price target from $30 to $25, implying substantial potential appreciation if management’s recovery strategy gains traction. BTIG Capri price-target update
• Neutral Sentiment: Analyst opinion remains mixed. Recent coverage describes conflicting views on Capri, reflecting the tension between its low valuation and the need for sustained improvement across Michael Kors and Jimmy Choo. Analysts Have Conflicting Sentiments on Consumer Cyclical Companies
• Negative Sentiment: Multiple firms lowered targets. UBS cut its target from $20 to $17 and retained a Neutral rating; Goldman Sachs reduced its target from $21 to $18; and Telsey lowered its target from $21 to $18. These revisions signal more modest expectations even though the targets remain above the recent share price. Capri Price Target Cut to $17 by UBS
• Negative Sentiment: Turnaround concerns persist. Commentary highlights declining sales at Michael Kors, only modest improvement at Jimmy Choo, limited luxury-brand resilience and uncertainty surrounding Capri’s currency hedges. Analysts argue the stock’s headline valuation may overstate its attractiveness. Capri Holdings: The Turnaround Needs To Show Something More

Insider Buying and Selling at Capri

In other Capri news, Director Stephen F. Reitman sold 17,981 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $19.42, for a total transaction of $349,191.02. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On Capri

Hedge funds and other institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC bought a new position in Capri during the fourth quarter valued at approximately $201,000. Pacer Advisors Inc. increased its position in Capri by 136.5% during the 4th quarter. Pacer Advisors Inc. now owns 37,099 shares of the company’s stock valued at $905,000 after buying an additional 21,410 shares in the last quarter. Empowered Funds LLC grew its stake in shares of 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 acquiring an additional 550 shares during the last quarter. XTX Topco Ltd grew its position in 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 holdings 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 worth $4,308,000 after buying an additional 78,852 shares during the last quarter. 84.34% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CPRI has been the subject of a number of recent analyst reports. Raymond James Financial reiterated an “outperform” rating and issued a $22.00 price target on shares of Capri in a research note on Thursday, May 28th. Telsey Advisory Group decreased their price target on Capri from $21.00 to $18.00 and set a “market perform” rating on the stock in a research report on Thursday. Bank of America lowered their price objective on shares of Capri from $23.00 to $20.00 and set a “neutral” rating for the company in a research report on Thursday, May 28th. BTIG Research cut their price objective on Capri from $30.00 to $25.00 and set a “buy” rating on the stock in a report on Thursday. Finally, JPMorgan Chase & Co. lowered their price objective on Capri from $29.00 to $22.00 and set an “overweight” rating for the company in a research note on Tuesday. One investment 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. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $21.93.

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.