Capri Holdings (CPRI) Q1 2027 earnings summary

Executive summary

• First quarter fiscal 2027 revenue was $769 million, down 3.5% year-over-year, but gross margin improved by 200 basis points to 65.0%.

• Adjusted operating income rose to $28 million (3.6% margin), and adjusted EPS increased to $0.67, up 30% year-over-year.

• Net income from continuing operations was $69 million ($0.60 per diluted share); adjusted net income was $76 million ($0.67 per share).

• Results exceeded expectations, driven by strategic initiatives and strong performance at Jimmy Choo.

• $50 million in shares were repurchased, and the consumer database grew 8% year-over-year.

Financial highlights

• Gross profit was $500 million, with gross margin rising to 65.0% from 63.0% year-over-year.

• Free cash flow for the quarter was $48 million, with $73 million from operating activities and $25 million in capital expenditures.

• Net inventory decreased 20% year-over-year to $624 million.

• Net debt dropped to $224 million from $1.5 billion a year ago.

• Weighted average diluted shares outstanding for FY27 expected at 110 million.

Outlook and guidance

• Fiscal 2027 revenue expected at approximately $3.4 billion, reflecting headwinds at Michael Kors and currency impacts.

• Fiscal 2027 adjusted EPS outlook maintained at $2.15, representing 40% growth over the prior year.

• Fiscal 2027 operating income projected at $170 million; net interest and other income at $100 million.

• Second quarter revenue guidance is $780 million, with diluted EPS of $0.20.

• Michael Kors FY27 revenue expected at $2.765 billion (low double-digit margin); Jimmy Choo at $635 million (low single-digit margin).