Capri Holdings Lowers FY2027 Revenue Target to $3.4B but Holds EPS Steady Through Cost Cuts
CPRI is trading near its 52-week low of $15.195 (1.3% above the low).
Summary
Capri Holdings beat Q1 estimates but lowered its FY2027 revenue guidance to $3.4 billion, citing Michael Kors headwinds. Through cost actions, the company maintained its EPS outlook of $2.15, and it repurchased $50 million in shares during the quarter.
Key Events · Earnings and Guidance · CPRI
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Q1 Results Beat Expectations
Revenue of $769 million (down 3.5% YoY) and adjusted EPS of $0.67 exceeded consensus, driven by Jimmy Choo's 10.5% revenue growth and improved gross margins.
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FY2027 Revenue Guidance Cut
Full-year revenue outlook lowered to approximately $3.4 billion from $3.53 billion, reflecting $50M from Michael Kors inventory delays, $50M from softer EMEA trends, and $35M from currency headwinds.
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EPS Target Maintained at $2.15
Despite the revenue cut, the company kept its adjusted EPS guidance unchanged, citing operating expense reductions that offset the top-line shortfall.
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Share Repurchase Update
Capri spent $50 million in Q1 to repurchase 2.6 million shares at an average price of $19.31, with $871 million remaining under its $1 billion buyback program.
Analysis · CPRI · Manufacturing
Capri Holdings delivered Q1 results that topped expectations, yet it reduced its full-year revenue forecast by roughly $130 million, pointing to Michael Kors inventory delays, soft demand in EMEA, and currency headwinds. To counter the revenue shortfall, the company is trimming operating expenses, which keeps its EPS outlook unchanged at $2.15—a 40% jump from the prior year. With the stock hovering near its 52-week low, the guidance cut confirms the demand pressures highlighted in recent news. Still, the maintained EPS target and ongoing share buybacks underscore management's confidence in profitability and cash generation.
At the time of this filing, CPRI was trading at $15.39 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $15.20 to $28.27. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.