A month has gone by since the last earnings report for Stitch Fix (SFIX) . Shares have lost about 5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Stitch Fix due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, e ...

Since its all-time high, LVMH ( OTCPK:LVMHF ) ( OTCPK:LVMUY ) has fallen more than 40%, a loss of more than €100 billion in market cap. And as much as I believe that the current valuation is minimally attractive, it is a decline justified byEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collabor ...

It has been about a month since the last earnings report for Capri Holdings (CPRI) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Capri Holdings due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Since Th ...

Core Viewpoint - Capri Holdings Ltd may face legal claims from individuals or entities that sold its stock during specified periods due to alleged violations of federal securities laws [2][3]. Group 1 - Individuals or entities that sold Capri common stock between May 28, 2023, and July 1, 2023, or from July 30, 2023, to August 9, 2023, may have valuable claims against the company [2]. - The claims could allow for the recovery of significant monetary damages from Capri, regardless of whether the individuals bought, sold, or continue to own other shares of Capri [2][3]. - Legal representation for shareholders is provided by Shapiro Haber & Urmy LLP, which specializes in class actions against corporate defendants [3].

Core Viewpoint - Capri Holdings' international revenue performance is crucial for assessing its financial resilience and growth prospects, especially given the interconnected global economy [2][9]. Group 1: International Revenue Performance - The company's total revenue for the quarter was $1.04 billion, reflecting a decrease of 15.4% [4]. - EMEA contributed 29.18% of total revenue, amounting to $302 million, which was a surprise increase of +3.31% compared to analyst expectations [5]. - Asia accounted for 16.62% of total revenue, translating to $172 million, also exceeding expectations with a surprise of +2.22% [6]. Group 2: Future Revenue Projections - Analysts project total revenue for the current fiscal quarter to be $772.33 million, indicating a decline of 27.6% from the previous year [7]. - For the entire year, total revenue is forecasted at $3.34 billion, a reduction of 24.7% from the previous year, with EMEA and Asia expected to contribute 35.3% ($1.18 billion) and 17.4% ($581.41 million) respectively [8]. Group 3: Market Context and Stock Performance - The reliance on international markets presents both opportunities and challenges for Capri Holdings, necessitating close monitoring of revenue trends for future projections [9]. - The stock has increased by 16.5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 6.1% [13].

Group 1: Industry Developments - Kering Group has acquired Giambattista Valli, increasing its stake to full ownership, becoming the main investor and strategic decision-maker [11] - South Korean retail giant Shinsegae Group plans to acquire a controlling stake in C&C International, a color cosmetics ODM manufacturer, valued at 285 billion KRW (approximately 14.94 billion RMB) [6] - La Perla, a high-end lingerie brand, has been sold to an investment entity, which will retain the brand's existing factories and employees [5] Group 2: Company Performance - Gap Inc. reported a 2.2% increase in net sales to $3.463 billion for Q1, with net profit rising 22% to $193 million, driven by strong performance from Old Navy [2] - Capri Holdings reported a 15.4% decline in revenue to $1.035 billion for Q4 FY2025, with a net loss of $645 million, reflecting struggles across its main brands [3] Group 3: Mergers and Acquisitions - Elf Beauty has acquired Hailey Bieber's skincare brand Rhode for $1 billion, consisting of $600 million in cash and $200 million in newly issued common stock, with potential additional payments based on future growth [4] - Fountain Capital is seeking to raise up to $1.32 billion by selling approximately half of its stake in Amer Sports Inc., a manufacturer of sports equipment [4] Group 4: Brand Value Rankings - Chanel has surpassed Louis Vuitton to become the second most valuable luxury brand globally, according to Brand Finance's 2025 rankings, with Porsche retaining the top position [7] Group 5: Retail Expansion - Balenciaga has opened its largest flagship store globally in Beijing, covering 1,204 square meters, emphasizing its commitment to the Chinese market [8] Group 6: Data Security Issues - Adidas has reported a data breach involving customer data theft from a service provider, although payment information and passwords were not compromised [12]

Investment Rating - The report indicates that Capri Holdings (CPRI) is currently Not Rated [8]. Core Insights - Capri Holdings reported F4Q adjusted EPS of -$4.90, significantly below consensus estimates of -$0.16 to -$0.13, primarily due to a tax valuation allowance charge [1] - Despite the overall challenges, CPRI delivered better-than-expected revenue trends in the quarter, with consolidated sales declining by -15.4% year-over-year to $1.035 billion, surpassing consensus expectations of $974.7 million to $1.004 billion [1][9] - The company updated its FY26 guidance, now expecting total revenues of $3.3 billion to $3.4 billion, down from approximately $4.1 billion previously, reflecting the exclusion of Versace's contribution [2][9] - Management remains optimistic about returning to growth in FY27 and beyond, although profitability was disappointing due to gross margin contraction [3] Revenue Performance - Michael Kors sales were reported at $694 million, better than consensus expectations of $687.8 million, with a decline of -15.6% year-over-year [1][9] - Jimmy Choo sales were approximately in line with expectations at $133 million, declining -2.9% year-over-year [1][9] - Versace sales were reported at $208 million, consistent with consensus, declining -21.2% year-over-year [1][9] Margin Analysis - The adjusted gross margin for F4Q25 was 61.0%, below consensus estimates of 62.7% and 61.8% [1][9] - Adjusted SG&A as a percentage of sales was 64.2%, better than Goldman Sachs estimates of 65.3% but higher than consensus at 62.6% [1][9] - Adjusted EBIT margins were reported at -3.2%, below consensus estimates of -2.6% to -2.4% [1][9] FY26 Guidance - The company expects operating income of approximately $100 million for FY26, down from $150 million previously, with consensus estimates at $145.3 million to $141.9 million [2][9] - Michael Kors is now guided for sales of approximately $2.75 billion to $2.85 billion, while Jimmy Choo sales are expected at $540 million to $550 million [9] - For Q1, CPRI guided revenue of $765 million to $780 million, with adjusted EPS expected to be between $0.10 and $0.15 [9]

Core Viewpoint - Telsey Advisory Group analyst Dana Telsey maintains a Market Perform rating on Capri Holdings Limited (CPRI) and raises the price forecast from $17 to $20, despite the company reporting a larger-than-expected adjusted loss in Q4 [1][2]. Financial Performance - Capri Holdings reported a fourth-quarter adjusted loss of $4.90 per share, missing the expected loss of 14 cents, while quarterly sales reached $1.035 billion, a decline of 15.4% year over year, but exceeding the analyst consensus estimate of $986.57 million [1][2]. - On a constant currency basis, total revenue decreased by 14.1% [1]. Strategic Developments - The company has made significant announcements since Q3 FY25, including long-term brand-specific targets, the departure of CFO/COO Tom Edwards, and the $1.375 billion sale of Versace to Prada [2][3]. - These developments come after a failed acquisition attempt by Tapestry, Inc. in late 2024, with management aiming to stabilize operations through FY26 and anticipate a return to growth in FY27 [3]. Brand Performance - Michael Kors, Capri's largest brand, has experienced ten consecutive quarters of revenue declines, indicating substantial efforts are needed for recovery [3][4]. - The sale of Versace is expected to enhance margins and improve the balance sheet, allowing for potential share buybacks, although challenges remain for the Michael Kors and Jimmy Choo brands [4]. Production and Cost Implications - For FY26, most of Michael Kors' production will be sourced from Vietnam, Cambodia, and Indonesia, with only about 5% of total U.S. production tied to China [5]. - Under current tariff assumptions, the company anticipates a cost impact of approximately $60 million, potentially reducing gross margin by around 100 basis points [5]. Future Projections - Telsey projects FY26 revenue to decline by 24.3% to $3.36 billion, a sharper drop than the previously estimated 7.7% fall, while raising the FY26 EPS estimate to $1.33 from $1.02 [6]. - For FY27, Capri Holdings expects a return to revenue growth, supported by operating margin expansion due to ongoing cost-cutting initiatives [7].

Group 1 - Capri Holdings Limited reported mixed results for Q4, with adjusted EPS of a $4.90 loss, missing the Street view of a $0.14 loss, while quarterly sales were $1.035 billion, down 15.4% year over year, exceeding the analyst consensus estimate of $986.57 million [1] - CEO John D. Idol emphasized the company's focus on strategic initiatives aimed at returning to growth, expressing confidence in growing Michael Kors to $4 billion in revenue and Jimmy Choo to $800 million, while restoring operating margins to double-digit levels [2] - For fiscal 2026, Capri Holdings expects adjusted EPS to range between $1.20 and $1.40, above the $1.06 analyst estimate, but has lowered its sales guidance to $3.30 billion–$3.40 billion from a prior outlook of $4.10 billion, which is below the $4.11 billion consensus [3] Group 2 - For Q1, the company anticipates total revenue of approximately $765 million to $780 million, compared to the $959.91 million estimate, and projects EPS of approximately $0.10 to $0.15 against the $0.10 estimate [4] - Following the earnings announcement, Capri Holdings shares increased by 2.1% to trade at $18.42 [4] - Analysts have adjusted their price targets for Capri Holdings, with Telsey Advisory Group raising it from $17 to $20, JP Morgan lowering it from $19 to $18, and UBS raising it from $14 to $18 [9]

Group 1 - The core statement from Capri Holdings' CEO John Idol indicates that the company is in the early stages of a turnaround [1] Group 2 - The article reflects a focus on value investing rather than growth investing, highlighting a long-term perspective in investment analysis [1] - The author has been contributing to investment discussions since 2011, indicating a wealth of experience in analyzing market trends [1]