Capri Holdings Q2 revenue beats on wholesale shipment timing
Overview
US luxury fashion group's Q2 revenue fell 5.5% but beat analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased $150 mln in shares during the quarter
Outlook
Capri Holdings raises full-year revenue outlook to $3.42 bln and EPS to $2.20
Michael Kors full-year revenue seen at $2.77 bln, operating margin in low-double digits
Jimmy Choo full-year revenue expected at $650 mln, operating margin in low-single digits
Result Drivers
HIGHER FULL-PRICE SELL-THROUGHS - Co said improved gross margin was driven by more full-price sales, favorable brand mix and lower tariff rates
BRAND INITIATIVES - Co cited efforts to sharpen product assortments, elevate brand desirability and strengthen consumer engagement as supporting sequential improvement
WHOLESALE SHIPMENT TIMING - Co said $20 mln of revenue was pulled forward due to earlier wholesale shipments
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $809 mln | $781.05 mln (13 Analysts) |
Q2 Adjusted EPS | Beat | $0.42 | $0.21 (13 Analysts) |
Q2 EPS | $0.25 | ||
Q2 Adjusted Net Income | Beat | $45 mln | $23.35 mln (12 Analysts) |
Q2 Net Income | $27 mln | ||
Q2 Adjusted Operating Income | Beat | $31 mln | $10.88 mln (13 Analysts) |
Q2 Adjusted Operating Margin | 3.80% | ||
Q2 Operating Income | $10 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "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 $19.50, about 21.4% above its October 29 closing price of $16.06
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
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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.)