Capri Holdings reports mixed financial results for the fourth quarter

Capri Holdings (NYSE:CPRI) reported fiscal 4th fourth results that showed stronger-than-expected profitability but weaker-than-expected revenue, sending shares down much than 6% connected Wednesday afternoon.

The institution posted adjusted net per stock of $0.22, much than treble the $0.11 statement estimate.

Revenue totaled $796 million, beneath Wall Street expectations of $803.7 cardinal and down 3.7% year-over-year, oregon down 7% connected a changeless currency basis.

For fiscal 2027, Capri Holdings expects full gross of astir $3.525 cardinal and operating income of astir $190 million.

Capital expenditures are projected to beryllium astir $125 million, portion diluted net per stock are expected to travel successful astatine astir $2.15.

“We are gathering upon the improving trends resulting from the occurrence of our strategical initiatives,” Capri CEO John Idol said. “In fiscal 2027 we expect to instrumentality to debased azygous digit gross maturation and astir 40% net per stock growth.”

Jefferies analysts described the 4th arsenic mixed, noting that gross came successful somewhat beneath expectations, driven chiefly by Michael Kors, portion EBIT and EPS bushed consensus.

They noted that nett outperformance was supported successful portion by astir $40 cardinal successful IEEPA tariff refunds, and cautioned that excluding this benefit, underlying EBIT appeared softer, though timing and offsetting factors whitethorn person played a role.

Looking ahead, Jefferies highlighted fiscal twelvemonth 2027 guidance that came successful broadly successful enactment connected gross but supra expectations connected EBIT and EPS, supported by an anticipated 200 ground constituent betterment successful gross margin.

The steadfast noted that the outlook besides included moving items beneath the EBIT line, including involvement income, taxation complaint assumptions, and stock number benefits from buybacks.

At the aforesaid time, Jefferies pointed to a softer-than-expected first-quarter outlook, with some gross and EBIT guided beneath Street expectations, adjacent arsenic EPS came successful higher owed to taxation complaint dynamics.

On marque performance, the analysts highlighted continued spot successful Michael Kors retail full-price comparable income and sequential betterment successful wholesale trends, alongside akin momentum astatine Jimmy Choo. They besides noted that the institution repurchased astir 4 cardinal shares for $79 cardinal during the quarter.