Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Core Viewpoint - Capri Holdings Limited, a global fashion luxury group, is facing challenges despite a recent stock price increase, raising concerns about the sustainability of its performance [1][5]. Group 1: Stock Performance - Capri Holdings has experienced a 23.1% increase in its stock price since the last earnings report, outperforming the S&P 500 [2][5]. - Guggenheim has set a price target of $32 for CPRI, indicating a potential upside of 23.31% from its current price of $25.95 [1][5]. - The current stock price is $25.95, with a decrease of 1.22% today, and the stock has fluctuated between a low of $25.72 and a high of $26.35 during the trading day [4]. Group 2: Financial Performance - The second-quarter fiscal 2026 earnings report showed a year-over-year decline in revenue, although it exceeded the Zacks Consensus Estimate [2]. - The bottom line decreased compared to the previous year and fell short of the consensus estimate [2]. - Revenue declines were noted for both Michael Kors and Jimmy Choo, raising investor concerns about the sustainability of the stock's upward trend [3][5]. Group 3: Market Context - Capri Holdings competes with other luxury fashion houses such as LVMH and Kering [1]. - The company's market capitalization is approximately $3.09 billion, with a trading volume of 1,829,852 shares [4].

Core Insights - Capri Holdings reported a second-quarter loss for fiscal 2026, with revenues declining year over year but exceeding the Zacks Consensus Estimate [2] - The company faces challenges with revenue declines in its key brands, Michael Kors and Jimmy Choo, impacting overall financial performance [2][6][7] Financial Performance - The adjusted quarterly loss was 3 cents per share, missing the consensus estimate of 14 cents and significantly down from 64 cents per share in the prior year [3] - Total revenues were $856 million, beating the Zacks Consensus Estimate of $830 million but down 2.5% year over year [4] - Gross profit decreased 4.6% year over year to $522 million, with a gross margin decline to 61% from 62.3% [4] Segment Performance - Michael Kors revenues fell 1.8% year over year to $725 million, with a gross margin contraction to 59.3% [6] - Jimmy Choo's revenues were $131 million, down 6.4% year over year, but the gross margin improved to 70.2% [7] Financial Health - The company ended the quarter with cash and cash equivalents of $120 million and long-term debt of $1.75 billion, resulting in negative total shareholders' equity of $70 million [8] - Operating cash flow was $33 million, while capital expenditures were $13 million, leading to a negative free cash flow of $46 million [8] Future Outlook - For Q3 FY26, Capri Holdings expects total revenues between $975 million and $1 billion, with an operating margin of 7-8% and earnings per share between 70 cents and 80 cents [10][11] - For fiscal 2026, total revenues are projected to be $3.375-$3.45 billion, with an anticipated operating income of $100 million [12][13] Market Position - Capri Holdings has seen an upward trend in estimates, with a consensus estimate shift of 22.89% recently [14] - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [16]

Core Viewpoint - Capri Holdings is a luxury fashion and accessory brand with a market capitalization of $3 billion, highlighting its significant presence in the industry [1]. Group 1 - The presentation features Jennifer Davis, Vice President of Investor Relations, who introduces the session and the key executives from Capri Holdings, including CEO John Idol and Interim CFO Raj Mehta [1]. - The format of the session is a fireside chat, indicating an informal discussion aimed at engaging the audience [2].

Core Viewpoint - Prada S.p.A. has officially acquired Versace for $1.38 billion, which is significantly lower than the $2 billion paid by Capri Holdings Limited in 2018 [1] Group 1 - The acquisition price of $1.38 billion reflects a strategic move by Prada to enhance its luxury brand portfolio [1] - The previous acquisition of Versace by Capri Holdings in 2018 for $2 billion sets a comparative benchmark for the current deal [1]

Capri Holdings Conference Call Summary Company Overview - Capri Holdings is a luxury fashion accessory brand with a market cap of approximately $3 billion [1] Key Industry Insights - The luxury market has historically grown at about 5% annually, but faced a setback last year due to rising prices and changing consumer behavior [48] - There is a slow recovery in the luxury market, particularly in North America, driven by wealth accumulation and potential interest rate decreases [49] - The accessories market is showing signs of recovery, with trends influencing consumer purchasing behavior [50] Core Company Insights Sale of Versace - Capri Holdings completed the sale of Versace for approximately $1.4 billion, providing financial flexibility and reducing debt [4][14] - The sale allows the company to focus on its core brands, Michael Kors and Jimmy Choo [5] Brand Focus and Growth Strategy - Michael Kors is being repositioned to emphasize its "jet set" image through modern marketing strategies, including influencer engagement and social media [10][11] - The company aims to grow Jimmy Choo from a $600 million business to approximately $800 million in the coming years, with a focus on footwear and accessories [6][25] Store Renovations and Fleet Optimization - Capri Holdings plans to renovate over 50% of its store fleet worldwide, with a focus on creating a warmer, more residential store environment [14][17] - The company has closed around 125 stores in the past three years and aims to open new stores selectively as renovations progress [17] Key Performance Indicators (KPIs) - Traffic in stores, average unit retail (AUR), and full-price sell-through rates are primary KPIs being monitored [21][22] - The company has over 90 million people in its customer database, indicating strong engagement potential [22] Financial Outlook Sales and Profitability - Capri Holdings expects to see positive sales growth starting in the next fiscal year, with a significant inflection point anticipated by Q3 [24][25] - Long-term operating margin targets are set at low 20% for Michael Kors and low double-digit margins for Jimmy Choo [31][32] Capital Allocation - The company plans to invest in store renovations, digital initiatives, and technology, while also focusing on debt reduction and returning value to shareholders through a $1 billion share repurchase program [42][43] Consumer Demand and Market Trends - Consumer demand is expected to remain stable in North America, with a cautious outlook in Europe and improving conditions in China [34][36] - The company is observing a balance of tailwinds and headwinds affecting margins, with a focus on strategic pricing to mitigate tariff impacts [38][39] Conclusion - Capri Holdings is optimistic about returning to a $4 billion sales volume over the next three to five years, driven by strategic initiatives in both Michael Kors and Jimmy Choo [51][52] - The company is committed to enhancing its brand presence and profitability through targeted growth strategies and consumer engagement efforts [53]

Group 1 - Prada completed the acquisition of Versace from Capri Holdings for $1.25 billion, marking a strategic move to enhance its portfolio [1] - Capri Holdings faced financial pressure and declining revenues, leading to the decision to sell Versace, which had seen a 15% revenue drop to $193 million in FY2025 [1][2] - The sale proceeds of $1.375 billion will primarily be used to pay down debt, significantly improving Capri's financial situation and reducing its leverage ratio [2] Group 2 - The acquisition allows Prada to increase its pro-forma revenue by 13% and leverage the Italian supply chain for growth potential [1] - Capri's CEO John Idol emphasized the importance of the sale in enhancing the company's balance sheet and providing financial flexibility for future investments [2] - The sale of Versace is a critical step in Capri's restructuring plan, allowing it to focus on its core brands, Michael Kors and Jimmy Choo, amidst ongoing challenges [2][3]

Core Viewpoint - Capri Holdings Limited has successfully completed the sale of Versace to Prada S.p.A. for $1.375 billion in cash, which is expected to enhance the company's financial position and flexibility for future investments and shareholder returns [1][2]. Financial Impact - The proceeds from the sale will primarily be used to repay a significant portion of Capri Holdings' debt, leading to a substantial reduction in the company's leverage ratio [2]. - This transaction is anticipated to provide greater financial flexibility for Capri Holdings to invest in growth and return capital to shareholders in the future [2]. Strategic Focus - The company remains committed to executing its strategic initiatives across its remaining brands, Michael Kors and Jimmy Choo, to maximize their potential [2]. - Capri Holdings aims to stabilize its business in the current fiscal year while laying a solid foundation for growth in fiscal 2027 [2]. Leadership Acknowledgment - The CEO of Capri Holdings expressed gratitude to the Versace team for their contributions, particularly recognizing key leaders for their commitment to the brand's evolution [2]. Company Overview - Capri Holdings Limited is a global fashion luxury group that includes iconic brands such as Michael Kors and Jimmy Choo, focusing on glamorous style and craftsmanship [3].

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Revenue Performance - Total revenue for Michael Kors decreased to $725 million in Q3 2025 from $738 million in Q3 2024, representing a decline of 1.8%[156] - Total revenue for Jimmy Choo decreased to $131 million in Q3 2025 from $140 million in Q3 2024, representing a decline of 6.4%[156] - Total revenue for the company decreased to $856 million in Q3 2025 from $878 million in Q3 2024, representing a decline of 2.5%[156] - Total revenue decreased by $22 million, or 2.5%, to $856 million for the three months ended September 27, 2025, compared to $878 million for the same period in 2024[162] - Michael Kors revenue decreased by $13 million, or 1.8%, to $725 million, while Jimmy Choo revenue decreased by $9 million, or 6.4%[163] - Total revenue decreased by $73 million, or 4.2%, to $1.653 billion for the six months ended September 27, 2025, compared to $1.726 billion for the same period in 2024[182] - Michael Kors revenue decreased by $53 million, or 3.8%, to $1.360 billion for the six months ended September 27, 2025, while Jimmy Choo revenue decreased by $20 million, or 6.4%, to $293 million[186] Operating Performance - The company reported a loss from operations of $12 million in Q3 2025 compared to a loss of $6 million in Q3 2024[156] - The company experienced a significant loss from operations of $12 million for the three months ended September 27, 2025, compared to a loss of $6 million in the prior year[161] - Loss from operations was $12 million for the three months ended September 27, 2025, compared to a loss of $6 million for the same period in 2024, representing a 100% increase in loss[172] - Michael Kors recorded income from operations of $136 million for the six months ended September 27, 2025, down from $162 million in the prior year, with an operating margin decrease from 11.5% to 10.0%[197] Expenses - Cost of goods sold for Michael Kors increased to $295 million in Q3 2025 from $287 million in Q3 2024, an increase of 2.8%[156] - Selling, general and administrative expenses for Michael Kors decreased to $339 million in Q3 2025 from $344 million in Q3 2024, a decrease of 1.5%[156] - Total operating expenses decreased by $19 million, or 3.4%, to $534 million, representing 62.4% of total revenue[165] - Selling, general and administrative expenses decreased by $16 million, or 3.2%, to $481 million, accounting for 56.2% of total revenue[167] - Total operating expenses decreased by $57 million, or 5.3%, to $1.020 billion for the six months ended September 27, 2025, with a decrease in operating expenses as a percentage of total revenue from 62.4% to 61.7%[184] - Selling, general and administrative expenses decreased by $52 million, or 5.3%, to $936 million for the six months ended September 27, 2025, compared to $988 million for the same period in 2024[188] Profitability - Gross profit decreased by $25 million, or 4.6%, to $522 million, with a gross profit margin of 61.0% for the three months ended September 27, 2025[164] - Gross profit decreased by $58 million, or 5.4%, to $1.024 billion for the six months ended September 27, 2025, with gross profit margin at 61.9% compared to 62.7% in the prior year[183] - Michael Kors operating margin decreased from 11.8% to 10.1% for the three months ended September 27, 2025, while Jimmy Choo's operating margin worsened from a loss of 3.6% to 6.9%[176] Asset Impairment - Impairment of assets during the three months ended September 27, 2025, was $21 million, compared to $20 million in the same period last year[156] - Asset impairment charges recognized were $21 million for the three months ended September 27, 2025, compared to $20 million for the same period in 2024[169] - The company recognized asset impairment charges of $21 million for the six months ended September 27, 2025, compared to $20 million for the same period in 2024[190] Macroeconomic Factors - The company is facing macroeconomic conditions and inflationary pressures that are likely to impact consumer spending on luxury items[148] - The U.S. Government announced tariffs on imports from select countries, which could materially impact revenue and profitability[149] - The company anticipates continued challenges in demand for certain categories of fashion luxury goods, particularly in EMEA and Asia[163] Store Operations - The total number of retail stores decreased from 981 in 2024 to 907 in 2025, with a notable reduction in full-price retail stores[157] - The Americas region had 264 Michael Kors stores and 41 Jimmy Choo stores as of September 27, 2025[157] Cash Flow and Financing - Cash used in operating activities was $13 million for the six months ended September 27, 2025, compared to cash provided of $138 million for the same period in 2024[204] - Net cash provided by financing activities was $187 million during the six months ended September 27, 2025, compared to net cash used of $67 million in the prior year[206] - The company had cash and cash equivalents of $120 million as of September 27, 2025, up from $107 million as of March 29, 2025[203] Debt and Commitments - As of September 27, 2025, the company has $1.024 billion in borrowings outstanding under its 2022 Credit Facility and $724 million under its 2025 Term Loans[221] - The company has multiple fixed to fixed cross-currency swap agreements with an aggregate notional amount of $3.5 billion to hedge its net investment in CHF denominated subsidiaries[218] - The company recorded off-balance sheet commitments of $30 million related to outstanding letters of credit as of September 27, 2025[213] - The company has $30 million in off-balance sheet commitments related to letters of credit, with $29 million issued outside of the 2025 Credit Facilities[213] - The company is exposed to interest rate risk related to borrowings under its various credit facilities, with interest rates tied to different benchmarks[220] - The company has 17 financial institutions participating in its 2025 Credit Facilities, with no institution maintaining a maximum commitment percentage in excess of 10%[208]