Capri Holdings Q3 revenue beats estimates

Overview

• Global fashion luxury group's Q3 revenue fell 4% but beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company reduced net debt to $80 mln after Versace sale

Outlook

• Capri Holdings expects fiscal year 2026 revenue of $3.45 bln to $3.475 bln

• Capri Holdings projects diluted EPS of $1.30 to $1.40 for fiscal year 2026

• Michael Kors revenue forecasted at $2.86 bln to $2.875 bln for fiscal year 2026

Result Drivers

• VERSACE SALE - Proceeds from the Versace sale were used to significantly reduce net debt to $80 mln, strengthening the financial foundation

• MICHAEL KORS CHALLENGES - Michael Kors revenue decreased 5.6% on a reported basis, attributed to higher tariffs and currency fluctuations

• JIMMY CHOO GROWTH - Jimmy Choo revenue increased 5.0% on a reported basis, driven by improved operating income and margin

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 8 "hold" and 1 "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 $27.00, about 16.7% above its February 2 closing price of $23.14

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBw42zZkFa

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