Capri Holdings Q2 revenue beats on wholesale shipment timing
CPRI•Capri Holdings’ second-quarter revenue fell 5.5% to $809 million, beating analysts’ $781.05 million estimate, while adjusted EPS of $0.42 topped the $0.21 consensus. The company raised its full-year revenue outlook to $3.42 billion and EPS outlook to $2.20.
1. Quarterly results
Capri Holdings reported second-quarter revenue of $809 million, down 5.5% but above analysts’ $781.05 million estimate. Adjusted EPS was $0.42, compared with the $0.21 consensus, and adjusted net income was $45 million versus an estimated $23.35 million. The company said $20 million of revenue was pulled forward because of earlier wholesale shipments.
2. Outlook and drivers
The company raised its full-year revenue outlook to $3.42 billion and its EPS outlook to $2.20. It expects Michael Kors revenue of $2.77 billion, with operating margin in the low double digits, and Jimmy Choo revenue of $650 million, with operating margin in the low single digits. Capri said improved gross margin reflected more full-price sales, favorable brand mix and lower tariff rates; it also cited brand initiatives as supporting sequential improvement.
3. Shares and repurchases
Capri repurchased $150 million of shares during the quarter. Its shares were up 7% in premarket trading.
