Key Takeaways U.S. Valentine's Day spending is seen at a record $29.1B, averaging $199.78 per shopper.HSY, EAT and MOV aim to gain from chocolates, dining traffic and premium gifting demand, respectively.IPAR and ABNB target fragrance sales and romantic travel, respectively, as experiences fuel spending.Valentine’s Day may be about romance, but it’s also a major moment for consumer spending. According to a survey by the National Retail Federation, U.S. consumer spending is expected to hit a record $29.1 bil ...

Core Viewpoint - Capri Holdings, owner of Jimmy Choo, reported lower third-quarter sales but exceeded earnings and free cash flow expectations due to a significant reduction in net debt [1][6] Financial Performance - Revenue from continuing operations decreased by 4% year on year to $1.025 billion, or 5.9% at constant currency [1] - Gross profit fell to $623 million, with a margin of 60.8%, down from $674 million and 63.1% previously [2] - Operating margin improved to 4.5% from 2.4%, and net income from continuing activities rose to $57 million from $6 million a year earlier [1][2] - Diluted earnings per share from continuing operations increased to $0.47 from $0.05, with adjusted diluted EPS rising to $0.81 from $0.63 [2] Cash Flow and Debt - Operating cash flow reached $271 million, generating $252 million in free cash flow after $19 million of capital expenditure [2] - Cash and cash equivalents totaled $154 million, with borrowings of $234 million, resulting in net debt of $80 million, down from $1.17 billion a year earlier [3] Brand Performance - Michael Kors reported revenue of $858 million, down 5.6% on a reported basis and 7.3% in constant currency, with an operating income of $119 million and a margin of 13.9% [3] - Jimmy Choo generated revenue of $167 million, up 5% reported and 1.9% in constant currency, with an operating profit of $3 million, recovering from a $6 million loss [3] Regional Sales - Americas sales declined to $646 million from $696 million, EMEA sales increased to $268 million from $256 million, and Asia sales slipped to $111 million from $116 million [4] Year-to-Date Performance - For the nine months ending December 27, 2025, Capri reported revenue of $2.67 billion, down from $2.79 billion in the prior year, with net income attributable to the group reaching $141 million after a $537 million loss previously [4] Future Guidance - Capri issued adjusted guidance for fiscal 2026, projecting revenue of approximately $3.45 billion to $3.475 billion from continuing operations [5] - For Michael Kors, anticipated revenue is around $2.86 billion to $2.87 billion with an operating margin in the high single digits, while Jimmy Choo is forecasted to generate $590 million to $600 million in sales with a negative low single-digit operating margin [5] Management Outlook - The company remains exposed to global macroeconomic conditions, potential tariff increases, inflation, weaker consumer sentiment, and currency fluctuations [6] - Capri Holdings' chairman and CEO expressed confidence in the third-quarter performance and the strategies in place to support a return to growth in fiscal 2027 [6]

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]

Core Insights - Capri Holdings reported revenue of $1.03 billion for the quarter ended December 2025, reflecting an 18.7% decline year-over-year, but exceeded the Zacks Consensus Estimate by 2.68% [1] - The earnings per share (EPS) for the quarter was $0.81, up from $0.45 in the same quarter last year, surpassing the consensus EPS estimate of $0.78 by 4.11% [1] Revenue Performance - Geographic Revenue in the Americas was $646 million, slightly above the average estimate of $620.84 million, but down 14.3% year-over-year [4] - Revenue from Asia was $111 million, matching the average estimate but down 33.1% year-over-year [4] - EMEA revenue stood at $268 million, in line with estimates but down 21.4% year-over-year [4] - Revenue from Jimmy Choo was $167 million, exceeding the estimate of $152.02 million, marking a 5% increase year-over-year [4] - Michael Kors generated $858 million in revenue, slightly above the estimate of $846.27 million, but down 5.6% year-over-year [4] Operational Metrics - Income from operations for Jimmy Choo was $3 million, significantly better than the estimated loss of $5.36 million [4] - Michael Kors reported an income from operations of $119 million, surpassing the average estimate of $115.28 million [4] Stock Performance - Capri Holdings' shares have returned -6.2% over the past month, contrasting with the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]

Core Viewpoint - Capri Holdings has raised its annual revenue forecast due to consistent demand for apparel and handbags from its brands, Jimmy Choo and Michael Kors [1] Group 1: Company Performance - Capri Holdings is experiencing steady demand for its products, which has led to an optimistic outlook for revenue [1] Group 2: Brand Insights - The brands Jimmy Choo and Michael Kors are specifically highlighted as key contributors to the company's revenue growth [1]

Core Insights - National Vision (EYE) has experienced a significant share price increase of 154.6% over the past 12 months, outperforming the industry decline of 13.9% and the S&P 500's growth of 16.4% [1][9] Company Performance - National Vision holds a Zacks Rank 3 (Hold) and is benefiting from the strong performance of its America's Best brand, with strategic initiatives showing early progress [2] - The company operates 1,242 retail stores across four brands and has a distribution network that includes a 118,000-square-foot center in Georgia and a 52,000-square-foot center in Ohio [3] Revenue Growth - The Owned & Host segment of National Vision reported a 9.1% year-over-year revenue increase in Q3 2025, primarily driven by America's Best brand [4][9] - The company opened four new America's Best stores and converted four Eyeglass World locations during the September 2024 to September 2025 period [5] Strategic Initiatives - National Vision is enhancing its Eyeglass World operations with a new leadership team and expanding remote exam capabilities, with two-thirds of its stores now equipped for remote technology [6] - The company is testing smaller store formats for America's Best and is incorporating insights from a fleet optimization review into future growth plans [5][6] Customer Engagement - Early indicators of stronger customer engagement are noted, supported by a new marketing strategy and customer relationship management (CRM) platform [10] - Newly introduced premium frames are selling faster than expected, indicating positive consumer response [10] Financial Estimates - The Zacks Consensus Estimate projects a 32.6% increase in earnings per share (EPS) for 2025, reaching $0.69, and a 26.8% increase for 2026, reaching $0.88 [12] - Revenues are expected to grow by 5.2% to $1.98 billion in 2025 and reach $2.05 billion in 2026, implying a 3.3% increase [12]

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]

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].