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 ...

Capri Holdings (NYSE:CPRI) Q3 2026 Earnings call February 03, 2026 08:30 AM ET Speaker9...Greetings, and welcome to the Capri Holdings Limited third quarter fiscal 2026 financial results call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I'd now like to turn the co ...

分组1 - Capri Holdings reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, and up from $0.45 per share a year ago, representing an earnings surprise of +4.11% [1] - The company posted revenues of $1.03 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.68%, but down from $1.26 billion year-over-year [2] - Capri Holdings has surpassed consensus revenue estimates four times over the last four quarters [2] 分组2 - The stock has underperformed the market, losing about 5.2% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $0.15 on $797.32 million in revenues for the coming quarter and $1.39 on $3.45 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Retail - Apparel and Shoes is currently in the top 19% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

3Q Fiscal Year 2026 Earnings Presentation February 3, 2026 THIRD QUARTER FISCAL 2026 HIGHLIGHTS For a reconciliation of GAAP to Non-GAAP financial information, see appendix. • Revenue and earnings per share exceeded expectations • Revenue decreased 4.0% (-5.9% constant currency) • Gross margin of 60.8% • Adjusted operating margin of 7.7% • Adjusted EPS increased ~30% to $0.81 • Increased consumer database by 8% versus prior year • Significantly reduced debt with proceeds from Versace sale • Net debt of ~$80 ...

Capri Holdings on Tuesday raised its annual revenue forecast, banking on steady demand for apparel and handbags across its Jimmy Choo and Michael Kors brands. ...

Exhibit 99.1 Capri Holdings Limited Announces Third Quarter Fiscal 2026 Results Revenue and Earnings Per Share Exceed Expectations Reduced Net Debt to $80M at Quarter End London — February 3, 2026 — Capri Holdings Limited (NYSE:CPRI), a global fashion luxury group, today announced its financial results for the third quarter of Fiscal 2026 ended December 27, 2025. Third Quarter Fiscal 2026 Highlights from Continuing Operations John D. Idol, the Company's Chairman and Chief Executive Officer, said, "We were p ...

Core Insights - Capri Holdings Limited reported its financial results for the third quarter of Fiscal 2026, indicating a performance that exceeded expectations, particularly for its brands Michael Kors and Jimmy Choo [2][3]. Financial Performance - Total revenue for the third quarter was $1.025 billion, a decrease of 4.0% compared to the previous year, and a 5.9% decrease on a constant currency basis [5][6]. - Gross profit was $623 million, with a gross margin of 60.8%, down from $674 million and 63.1% in the prior year [6]. - Income from operations was $46 million, resulting in an operating margin of 4.5%, compared to $26 million and 2.4% in the prior year [6][22]. - Net income was $57 million, or $0.47 per diluted share, compared to $6 million, or $0.05 per diluted share, in the prior year [6][22]. - Adjusted net income was $98 million, or $0.81 per diluted share, compared to $74 million, or $0.63 per diluted share, in the prior year [6]. Brand Performance - Michael Kors revenue was $858 million, a decrease of 5.6% on a reported basis and 7.3% on a constant currency basis [11][21]. - Jimmy Choo revenue increased by 5.0% to $167 million on a reported basis and 1.9% on a constant currency basis [11][21]. Strategic Initiatives - The company completed the sale of Versace, which was aimed at strengthening its financial foundation and reducing debt levels, ending the quarter with $80 million of net debt [2][3]. - The management expressed confidence that ongoing strategic initiatives will support a return to growth in fiscal 2027 and establish a foundation for sustainable performance [2][3]. Outlook - The company provided guidance for Fiscal Year 2026, expecting total revenue of approximately $3.45 to $3.475 billion and diluted earnings per share of approximately $1.30 to $1.40 [12].

Core Insights - The luxury brand sector, particularly the affordable luxury segment, is facing significant challenges due to tightening consumer spending and competition from both high-end second-hand markets and local brands [2][3][4] Group 1: Market Performance - Despite overall pressure, the Chinese market remains a strategic priority for luxury brands, with notable sales growth reported: Coach's sales in the Greater China region increased by 21% year-on-year for Q1 FY2026, while Ralph Lauren saw a 30% increase in the same period [3] - The second-hand luxury market in China is projected to reach a transaction volume of 38.4 billion yuan by 2025, with high-end brands like Chanel and Louis Vuitton leading in sales [4] Group 2: Competitive Landscape - The rise of local brands and the expansion of the second-hand luxury market pose significant threats to international affordable luxury brands, with local brands like Shanxiaoyousong and Qiu Zhen rapidly gaining market share [10][11] - Local brands are leveraging highly localized strategies, focusing on specific consumer demographics and cultural resonance, which has proven effective in attracting younger consumers [14][16] Group 3: Brand Strategies - International affordable luxury brands are responding to market pressures by revitalizing their product lines and redefining their brand positioning to appeal to younger consumers [20][23] - Brands are shifting their distribution strategies to enhance accessibility, with plans for more localized store openings and experiential retail environments [25][26] - Marketing efforts are increasingly focused on local culture and social media engagement, with brands collaborating with celebrities and utilizing platforms like Xiaohongshu and Douyin to enhance visibility [28][30]

Core Viewpoint - The article summarizes significant analyst rating changes that are expected to impact the market, highlighting both upgrades and downgrades across various companies and sectors [1][6]. Upgraded Ratings - Roku (ROKU): Morgan Stanley upgraded the rating from "Underweight" to "Overweight," raising the target price from $85 to $135, citing strong performance in the digital advertising market and expected robust growth in U.S. advertising spending by 2026 [5]. - Okta (OKTA): Jefferies upgraded the rating from "Hold" to "Buy," increasing the target price from $90 to $125, noting Okta's efforts to build a comprehensive identity authentication platform that can capitalize on the growing demand for intelligent agents [5]. - ServiceNow (NOW): Guggenheim upgraded the rating from "Sell" to "Neutral," stating that the current stock price is below the previously set target price, making it attractive [5]. - Rockwell Automation (ROK): Goldman Sachs upgraded the rating from "Sell" to "Neutral," raising the target price from $329 to $448, highlighting the potential operational leverage from structural price increases under new management [5]. - L3 Harris Technologies (LHX): Morgan Stanley upgraded the rating from "Hold" to "Overweight," increasing the target price from $350 to $367, based on a positive outlook for the aerospace and defense sector in 2026, with demand growth expected to outpace supply [5]. Downgraded Ratings - Zimmer Biomet (ZBH): Baird downgraded the rating from "Outperform" to "Neutral," lowering the target price from $117 to $100, citing disappointing performance expectations for 2025 and potential market share loss to Stryker's Mako orthopedic surgical robot [5]. - Capri Holdings (CPRI): Wells Fargo downgraded the rating from "Overweight" to "Hold," raising the target price from $25 to $27, indicating that previous positive factors driving the stock price have diminished, leading to increased market divergence on growth expectations [5]. - Lockheed Martin (LMT): Morgan Stanley downgraded the rating from "Overweight" to "Hold," reducing the target price from $630 to $543, while still optimistic about the aerospace and defense sector's outlook [5]. - StubHub (STUB): Citizens Bank downgraded the rating from "Outperform" to "Market Perform," with no target price set, anticipating increased market competition in 2026 that may limit market share growth [5]. - GitLab (GTLB): KeyBanc downgraded the rating from "Overweight" to "Sector Weight," with no target price set, expressing concerns over pricing power potentially hindering growth and increased execution risks due to a shift to a usage-based billing model [5]. Initiated Coverage - MongoDB (MDB): Raymond James initiated coverage with a "Market Perform" rating and no target price, noting the balanced market sentiment around the stock despite its strategic importance in the independent database platform sector [11]. - D-Wave Quantum (QBTS): Jefferies initiated coverage with a "Buy" rating and a target price of $45, highlighting the increasing market attention and application rates for various quantum computing architectures [11]. - Omnicom Group (OMC): Morgan Stanley resumed coverage with a "Hold" rating and a target price of $88, indicating that the company's merger integration efforts present both opportunities and risks [11]. - Freshpet (FRPT): Morgan Stanley initiated coverage with a "Hold" rating and a target price of $71, recognizing the long-term growth potential in the pet food industry but cautioning against short-term economic pressures [11]. - Jumia Technologies (JMIA): Craig-Hallum initiated coverage with a "Buy" rating and a target price of $18, emphasizing the company's optimized product offerings and logistics network as key drivers for achieving sustainable double-digit growth by 2030 [11].

Upgrades - Morgan Stanley upgraded L3Harris Technologies (LHX) to Overweight from Equal Weight with a price target of $367, up from $350, citing attractive aerospace and defense demand outpacing supply growth into 2026 [2] - Morgan Stanley also upgraded General Dynamics (GD) to Overweight [2] - Goldman Sachs upgraded Rockwell Automation (ROK) to Neutral from Sell with a price target of $448, up from $329, highlighting early stages of structural pricing improvements under new management [3] - Jefferies upgraded Okta (OKTA) to Buy from Hold with a price target of $125, up from $90, noting significant opportunities in building a complete identity platform [4] - Morgan Stanley upgraded Roku (ROKU) to Overweight from Underweight with a price target of $135, up from $85, anticipating a strong 2026 for U.S. advertising spend due to digital strength [4] Downgrades - Baird downgraded Zimmer Biomet (ZBH) to Neutral from Outperform with a price target of $100, down from $117, due to disappointing 2025 projections despite good initial product uptake [5] - Wells Fargo downgraded Capri Holdings (CPRI) to Equal Weight from Overweight with a price target of $27, up from $25, arguing that positive catalysts are now behind and risk/reward is more balanced [5] - Morgan Stanley downgraded Lockheed Martin (LMT) to Equal Weight from Overweight with a price target of $543, down from $630, while still viewing aerospace and defense as attractive [5] - Citizens downgraded StubHub (STUB) to Market Perform from Outperform, expecting increased competition in 2026 to limit share gains [5] - KeyBanc downgraded GitLab (GTLB) to Sector Weight from Overweight, indicating pricing power will be a headwind and execution risk is increasing due to business model changes [5]