There's an attractive bull case for Capri Holdings Limited ( CPRI ) at the moment. After a difficult few years highlighted by missteps around the core Michael Kors brand and the aborted acquisition byI've been contributing to Seeking Alpha and other investment websites since 2011, with a general (though far from rigid) focus on value over growth. I got my Series 7 and 63 back in 1999, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail brokerage in NYC. Now co-hos ...

Core Viewpoint - Capri Holdings (CPRI) stock initially rose above $25 after a sell rating was issued, but has since declined, indicating volatility in its market performance [1] Group 1: Stock Performance - After the initial analysis, Capri Holdings' stock experienced a short-lived increase before gradually declining [1] - The stock's performance suggests a potential disconnect between market perception and the analyst's rating [1] Group 2: Investment Philosophy - The company focuses on identifying undervalued stocks with a favorable risk-reward profile, emphasizing the importance of understanding ownership [1] - A belief is expressed that the simplest investment ideas often yield the best results, particularly when they are contrarian in nature [1]

Key Takeaways CPRI topped Q3 earnings estimates as operating performance and expense discipline boosted profitability.Jimmy Choo posted revenue growth, driven by strength in core accessories and better retail trends.CPRI used proceeds from the Versace divestiture to cut debt, shrinking net debt sharply.Capri Holdings Limited (CPRI) delivered better-than-expected third-quarter fiscal 2026 results, with both revenues and earnings surpassing the Zacks Consensus Estimate. While the top line declined year over y ...

Jimmy Choo owner Capri Holdings recorded lower third-quarter sales, but earnings and free cash flow surpassed expectations as the group sharply reduced net debt. For the three months to 27 December 2025, the luxury group said revenue from continuing operations fell 4% year on year to $1.025bn, or 5.9% at constant currency. Operating margin improved to 4.5% from 2.4%, while net income from continuing activities climbed to $57m from $6m a year earlier. Gross profit declined to $623m, producing a margin o ...

Revenue Performance - Total revenue for the three months ended December 27, 2025, was $1,025 million, a decrease of 4% compared to $1,068 million for the same period in 2024[167]. - Michael Kors revenue for the nine months ended December 27, 2025, was $2,218 million, down 4% from $2,322 million in the prior year[167]. - Jimmy Choo revenue for the three months ended December 27, 2025, increased by 5% to $167 million from $159 million in the same period last year[167]. - Total revenue decreased by $43 million, or 4.0%, to $1.025 billion for the three months ended December 27, 2025, compared to $1.068 billion for the same period in 2024[175]. - Total revenue decreased by $116 million, or 4.2%, to $2.678 billion for the nine months ended December 27, 2025, compared to $2.794 billion for the same period in 2024[195]. - Michael Kors revenue decreased by $104 million, or 4.5%, to $2.218 billion for the nine months ended December 27, 2025, with a constant currency decrease of 6.0%[199]. - Jimmy Choo revenue decreased by $12 million, or 2.5%, to $460 million for the nine months ended December 27, 2025, with a constant currency decrease of 5.5%[199]. Cost and Expenses - Total cost of goods sold for the three months ended December 27, 2025, was $402 million, compared to $394 million for the same period in 2024, reflecting a 2% increase[167]. - Gross profit decreased by $51 million, or 7.6%, to $623 million, with a gross profit margin of 60.8% for the three months ended December 27, 2025, down from 63.1% in 2024[177]. - Total operating expenses decreased by $71 million, or 11.0%, to $577 million, which is 56.3% of total revenue for the three months ended December 27, 2025, down from 60.7% in 2024[178]. - Selling, general and administrative expenses decreased by $2 million, or 0.4%, to $535 million, with an increase in percentage to 52.2% of total revenue for the three months ended December 27, 2025[180]. - Selling, general and administrative expenses decreased by $54 million, or 3.5%, to $1.471 billion for the nine months ended December 27, 2025, compared to $1.525 billion for the same period in 2024[201]. - Total operating expenses decreased by $128 million, or 7.4%, to $1.597 billion for the nine months ended December 27, 2025, representing 59.6% of total revenue[198]. Income and Profitability - Income from continuing operations for the three months ended December 27, 2025, was $46 million, compared to $26 million for the same period in 2024, representing a significant increase[167]. - Income from continuing operations increased by $20 million, or 76.9%, to $46 million, representing 4.5% of total revenue for the three months ended December 27, 2025[174]. - Net income from continuing operations was $57 million for the three months ended December 27, 2025, compared to $6 million for the same period in 2024[192]. - Income from continuing operations was $50 million for the nine months ended December 27, 2025, compared to $31 million for the same period in 2024, representing a 61.3% increase[206]. - Michael Kors recorded income from operations of $255 million for the nine months ended December 27, 2025, down from $309 million for the same period in 2024, with an operating margin decrease from 13.3% to 11.5%[210]. - Jimmy Choo operating margin improved from a loss of 3.8% to an income of 1.8% due to leveraging operating expenses on higher revenues[188]. Store and Asset Management - The number of full-price retail stores for Michael Kors decreased to 368 as of December 27, 2025, from 435 as of December 28, 2024[169]. - The total number of retail stores decreased from 971 as of December 28, 2024, to 908 as of December 27, 2025[169]. - Impairment of assets during the nine months ended December 27, 2025, primarily related to operating lease right-of-use assets at certain Michael Kors store locations[168]. - No asset impairment charges were recognized for the three months ended December 27, 2025, compared to $81 million in the same period of 2024[182]. - The company recognized asset impairment charges of $21 million for the nine months ended December 27, 2025, down from $101 million for the same period in 2024[203]. - Restructuring expenses of $12 million were recorded for the three months ended December 27, 2025, primarily related to lease termination costs[183]. Financial Position and Cash Flow - Net cash provided by operating activities was $258 million during the nine months ended December 27, 2025, compared to $441 million for the same period in 2024, reflecting a decrease due to timing of payments[216]. - Net cash used in investing activities was $45 million during the nine months ended December 27, 2025, compared to $25 million for the same period in 2024, primarily due to capital expenditures[217]. - Net cash used in financing activities increased to $1.344 billion during the nine months ended December 27, 2025, compared to $212 million for the same period in 2024, mainly due to higher net debt repayments[218]. - As of December 27, 2025, total borrowings outstanding amounted to $234 million, a significant decrease from $1,490 million on March 29, 2025[219]. - The company has a total availability of $1,500 million under its Revolving Credit Facility, with remaining availability of $1,278 million as of December 27, 2025[219]. - The company is in compliance with all covenants related to its debt agreements, which require a maximum net leverage ratio of 4.0 to 1.0[219]. Corporate Developments - The merger agreement with Tapestry was terminated, with Tapestry agreeing to reimburse the company approximately $45 million for certain expenses[157]. - The company expects to spend approximately $100 million in Fiscal 2026 on capital expenditures, including store renovations and IT enhancements[214]. - The share repurchase program approved on November 4, 2025, allows for the repurchase of up to $1.0 billion of outstanding ordinary shares, expected to begin in Fiscal 2027[223]. - The company has not repurchased any ordinary shares during the pendency of the Merger Agreement through the expiration date of the previous share repurchase program[222]. Risk Management - The company faced macroeconomic challenges, including inflation and geopolitical factors, impacting consumer spending and overall financial performance[158]. - The company is exposed to interest rate risk related to $221 million borrowings outstanding under its 2022 Credit Facility as of December 27, 2025[234]. - The company has multiple fixed to fixed cross-currency swap agreements with aggregate notional amounts of $3.5 billion to hedge net investments in CHF denominated subsidiaries[231]. - A 10% appreciation or devaluation of the United States dollar would result in a net increase or decrease of approximately $390 million in the fair value of the cross-currency swap agreements for CHF[231]. - The company has 17 financial institutions participating in its credit facilities, with none maintaining a maximum commitment percentage in excess of 10%[220].

Core Viewpoint - Capri Holdings Limited reported third-quarter results that exceeded analyst expectations for both earnings and revenue, despite ongoing sales pressure across its portfolio [1] Financial Performance - For the quarter ended December 27, 2025, Capri posted adjusted earnings per share of $0.81, surpassing the consensus estimate of $0.77 [2] - Revenue totaled $1.025 billion, exceeding analyst forecasts of $1.00 billion, although sales declined 4.0% year over year, or 5.9% on a constant-currency basis [2] - The company significantly reduced its net debt position to $80 million at quarter-end, down from $1.17 billion a year earlier, due to proceeds from the sale of its Versace brand [2] Brand Performance - By brand, Michael Kors revenue declined 5.6% to $858 million, while Jimmy Choo posted revenue growth of 5.0% to $167 million [3] - Gross margin fell to 60.8% from 63.1% in the prior-year quarter, primarily due to higher-than-expected tariff costs [3] Future Guidance - Capri guided fiscal 2026 revenue of $3.45 billion to $3.475 billion, modestly below the $3.53 billion consensus estimate [3] - The company projected diluted earnings per share of approximately $1.30 to $1.40 for the full year [3]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

For the quarter ended December 2025, Capri Holdings (CPRI) reported revenue of $1.03 billion, down 18.7% over the same period last year. EPS came in at $0.81, compared to $0.45 in the year-ago quarter.The reported revenue represents a surprise of +2.68% over the Zacks Consensus Estimate of $998.29 million. With the consensus EPS estimate being $0.78, the EPS surprise was +4.11%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall St ...

John Idol: Thank you, Jennifer, and good morning, everyone. We were pleased with our third quarter performance, which exceeded our expectations. Across both Michael Kors and Jimmy Choo, we continue to execute on our strategic initiatives to position our iconic brands for long-term success. Our strategies remain anchored in strengthening brand desirability through delivering compelling storytelling and creating fashion luxury products that excite and inspire consumers. Together with our advanced data analyti ...

Capri Holdings (NYSE:CPRI) Q3 2026 Earnings call February 03, 2026 08:30 AM ET Company ParticipantsBrooke Roach - Managing Director of Equity ResearchJay Sole - Managing DirectorJennifer Davis - VP of Investor RelationsJohn Idol - Chairman and CEOOliver Chen - Managing Director of Retail, Luxury and New Platforms Sector HeadPaul Lejuez - Managing DirectorRaj Mehta - CFORick Patel - Managing DirectorConference Call ParticipantsAdrienne Yih - Director and Senior Equity AnalystAneesha Sherman - Senior AnalystB ...