Capri Holdings Q2 revenue beats on wholesale shipment timing

By Reuters News


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


Reuters Recommended Reads

  • Oct 28 - VF Corp Q2 revenue beats estimates on brand performance

  • Oct 29 - Crocs Q3 revenue beats estimates on international growth

  • Oct 29 - Columbia Sportswear Q3 revenue beats, helped by international growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.
 

Cryptocurrency-related content is intended solely as news and market commentary. Crypto Derivatives are not available to Retail clients registered with Capital Com (UK) Ltd.