Capri Slashes FY27 Revenue Outlook by $125M, Blames Middle East Conflict and Inventory Shortages
CPRI is trading near its 52-week low of $15.195 (2.7% above the low).
Summary
Capri Holdings cut its fiscal 2027 revenue forecast to $3.4 billion from $3.525 billion, a $125 million reduction driven by three specific headwinds: $50 million from lower Michael Kors inventory availability in Q2, $50 million from softer EMEA trends tied to the Middle East conflict, and $35 million in FX headwinds. The warning overshadowed a strong Q1 earnings beat—adjusted EPS of $0.67 versus the $0.40 consensus and revenue of $769 million versus $752.7 million—and shares fell 4.4% intraday. Michael Kors revenue dropped 7% in the quarter, with a 10% decline in the Americas, while Jimmy Choo grew 10.5%. The company maintained its full-year EPS guidance of $2.15, above the $2.08 consensus, and raised its gross margin outlook to 64%, but the revenue cut signals that the luxury demand recovery is stalling. This follows the earlier Reuters report this morning and the 8-K filing, but adds the specific conflict impact and the Q1 beat details. The second half of the year is expected to bring a Michael Kors revenue rebound, but the near-term pressure from geopolitical and inventory issues is material.
At the time of this announcement, CPRI was trading at $15.61 on NYSE in the Trade & Services sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $15.20 to $28.27. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.