Capri Holdings Reports Mixed Results Amidst Luxury Demand Concerns
Michael Kors, Jimmy Choo Parent See Shaky Luxury Demand
Image: Benzinga
Capri Holdings Limited, the parent company of Michael Kors and Jimmy Choo, reported fourth-quarter earnings of 22 cents per share, exceeding estimates. However, revenue fell 3.7% year-over-year to $796 million, and the company lowered its sales outlook for fiscal 2027, reflecting challenges in luxury demand.
- 01Capri Holdings reported adjusted earnings of 22 cents per share, surpassing analyst expectations of 11 cents.
- 02Revenue declined by 3.7% year-over-year to $796 million, slightly below the consensus estimate of $796.4 million.
- 03Michael Kors revenue fell 5.5% to $656 million, while Jimmy Choo saw a 5.3% increase to $140 million.
- 04The company forecasts fiscal 2027 earnings of $2.15 per share, exceeding analyst estimates of $1.79.
- 05Capri plans to refurbish about 100 stores and upgrade 150 department store locations to enhance retail experience.
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Capri Holdings Limited (NYSE:CPRI) announced its fourth-quarter results, revealing adjusted earnings of 22 cents per share, significantly above the analyst forecast of 11 cents. Despite this, revenue fell 3.7% year-over-year to $796 million, narrowly missing the expected $796.4 million. The company benefitted from a gross profit increase to $516 million and a gross margin expansion to 64.8%, aided by tariff-related refunds. Segment performance varied, with Michael Kors revenue declining by 5.5% to $656 million, while Jimmy Choo's revenue increased by 5.3% to $140 million. Looking ahead, Capri projects earnings of $2.15 per share for fiscal 2027, along with a reduced sales outlook of $3.525 billion. The company aims to refurbish approximately 100 stores and upgrade 150 department store locations to improve the retail experience. Capri's shares fell 4.86% to $17.60 following the announcement.
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The decline in luxury demand may affect retail jobs and store operations as Capri Holdings adjusts its strategy.
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