Capri Holdings Gains as High-End Fashion Continues to Top Estimates
2022.06.01 17:40
Capri Holdings (CPRI) Gains as High-End Fashion Continues to Top Estimates
By Sam Boughedda
Capri Holdings (NYSE:CPRI) gained in early Wednesday trading after the company reported its fiscal fourth-quarter earnings, topping both earnings and revenue estimates.
The fashion holding company posted earnings per share of $1.02 on revenue of $1.49 billion, beating consensus estimates of $0.82 on revenue of $1.41 billion.
Capri, which owns brands such as Versace, Jimmy Choo, and Michael Kors, has maintained the recent run of high-end fashion companies reporting better than anticipated results when inflation is soaring.
Ralph Lauren (NYSE:RL) and Canada Goose (NYSE:GOOS) recently reported earnings above expectations, with high-end brands and outlets not yet experiencing a slowdown in demand.
Capri’s revenue rose 24.6%, with the company reporting better than anticipated results across all three luxury houses. Adjusted gross margin expanded 20 basis points, while adjusted operating margin increased 230 basis points to 14.2%.
“Looking back on fiscal 2022, I am proud of the progress we made across all our luxury houses. Revenue and earnings results significantly exceeded our original expectations. Capri Holdings achieved the highest revenue, gross margin and earnings per share in the company’s history,” said John Idol, Capri’s Chairman, and Chief Executive Officer.
Looking ahead, Capri expects revenue of approximately $5.95 billion for fiscal 2023, with earnings of roughly $6.85 per share. This compares to the consensus of $6.08 billion and $6.57, respectively. In addition, gross margin is estimated to be about flat compared to fiscal 2022, with benefits from strategic initiatives offset by higher transportation and input costs.
In fiscal Q1, Capri sees revenue of approximately $1.3 billion, with earnings per share at $1.35. This compares to the consensus of $1.35 billion and $1.45, respectively.
Capri has approved a new share repurchase program of up to $1 billion, with the new two-year program replacing its existing $1 billion share repurchase program, which had $500 million of availability remaining.
