Company Overview - Capri Holdings Limited is a global luxury goods company operating three iconic brands: Versace, Jimmy Choo, and Michael Kors, leveraging a diversified multi-brand strategy and an international retail footprint to capture demand in the high-end fashion and accessories market [2] - The company targets affluent consumers globally, with a presence in North America, Europe, Asia, and other key international markets [2] Recent Developments - Capri Holdings aims to expand its reach among affluent customers while maintaining brand exclusivity and recognition through a focus on direct-to-consumer sales and selective licensing [1] - The company reported revenue of $1.03 billion for its fiscal third quarter ended December 27, representing a 4% decline year over year [7] - Capri forecasts its 2026 fiscal year will conclude with $3.5 billion in sales, down from $4.4 billion in fiscal 2025 [7] Stock Performance - The average purchase price of Capri Holdings shares was around $17.98, close to the market close of $17.86 on March 11, 2026, with the stock's one-year total return at -13.54% as of that date [3] - The stock is down in 2026 after hitting a 52-week high of $28.27 last December [7] - CEO John D. Idol's recent purchase of 55,000 shares suggests a bullish outlook towards the company's stock, increasing his direct holdings by 2.50% [5][6] Financial Position - Capri sold its Versace brand to help reduce its net debt, which stood at $80 million at the end of fiscal Q3 [7]

Core Insights - The company is currently in a favorable position with two strong heritage brands, Michael Kors and Jimmy Choo, which are 45 and 30 years old respectively [2] - The strategic focus is on capturing market share among younger consumers, specifically targeting Gen Z and millennials [2] Strategic Initiatives - The company has identified opportunities for growth, particularly with the Michael Kors brand, and has been actively working on these initiatives for over a year [2] - There is an emphasis on leveraging the heritage of both brands to appeal to a younger demographic [2]

Capri Holdings Conference Call Summary Company Overview - **Company**: Capri Holdings (NYSE: CPRI) - **Brands**: Michael Kors, Jimmy Choo - **Recent Developments**: Sold Versace, resulting in reduced debt to $80 million, allowing for strategic investments and share repurchase programs [6][7] Strategic Initiatives - **Target Audience**: Focus on attracting younger consumers, specifically Gen Z and millennials [3][4] - **Brand Modernization**: - Michael Kors: Emphasis on modernizing the Jet Set heritage while maintaining brand identity [3][4] - Jimmy Choo: Shift in marketing to appeal to a broader lifestyle, including casual wear [9][10] - **Pricing Strategy**: Resetting pricing architecture to align with consumer expectations, resulting in reduced discounting and improved full-price sell-throughs [5][19] Financial Performance - **Jimmy Choo**: - Achieved three consecutive quarters of comparable store sales increases [9] - Projected to reach $800 million in revenue with operating margins of 10%-15% [13][40] - **Michael Kors**: - Focus on full-price sales and reduced promotional activities, leading to positive sales trends [21][22] - Anticipated operating margins above 20% [42][48] - **Overall Growth**: Expected low single-digit growth for Capri Holdings with significant operating margin expansion [30][31] Marketing and Sales Channels - **Influencer Marketing**: Increased use of influencers and social media channels to enhance brand visibility and engagement [5][26] - **Store Renovations**: Plans to renovate 350 stores with a budget of $300 million, aiming to improve customer experience and sales [20][35] - **Wholesale Business**: Positive developments in wholesale partnerships, particularly in North America and Europe, with a focus on accessible luxury [28][29] Market Conditions - **Luxury Market Trends**: The luxury accessories market is expected to decline slightly, but Capri Holdings aims to gain market share through accessible luxury offerings [54][55] - **Consumer Health**: North American consumers remain strong, with a resurgence in shopping mall traffic, particularly among younger demographics [58][59] - **Geopolitical Impact**: Limited impact from recent events in the Middle East, with a focus on maintaining operations in the region [57][58] Challenges and Risks - **Tariffs**: Anticipated tariff impacts of approximately $125 million, with expectations of stabilization in the future [66][67] - **Footwear Segment**: Identified as an area needing improvement, with plans to enhance product offerings [34] Leadership Changes - **New CFO/COO**: Tyler Redden, with extensive operational experience, is set to join the company, expected to contribute positively to operational efficiency [71] This summary encapsulates the key points discussed during the Capri Holdings conference call, highlighting the company's strategic direction, financial performance, market conditions, and leadership changes.

Group 1 - Capri Holdings Ltd. has appointed Tyler Reddien as chief financial officer and chief operating officer, effective March 30 [1] - Reddien previously served as CFO of The Body Shop and held senior leadership positions at Natura &Co. Holding and Hertz [2] - John D. Idol, chairman and CEO of Capri, praised Reddien's strategic mindset and international experience, highlighting his ability to drive performance and lead complex transformations [3] Group 2 - Reddien expressed enthusiasm about joining Capri, emphasizing the company's dynamic global business and significant growth opportunities [3] - Capri's notable brands include Michael Kors and Jimmy Choo, indicating a strong portfolio in the luxury fashion sector [3]

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 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]