Capri Holdings Stock Jumps On Strong Q1 Earnings, Raised FY22 Outlook

Capri Holdings Ltd CPRI reported first-quarter FY22 revenue growth of 177.2% year-on-year, to $1.25 billion, beating the analyst consensus of $1.11 billion.
Versace revenue increased 158% Y/Y to $240 million, Jimmy Choo rose 178% to $142 million, and Michael Kors revenue expanded 184% to $871 million.
Gross profit rose 183% Y/Y to $856 million, and gross margin expanded 130 basis points to 68.3% of net sales. Adjusted gross margin expanded 90 basis points to 68.1%.
The operating margin was 20.6%, and operating income for the quarter amounted to $258 million.
Operating expenses increased 28.9% Y/Y to $598 million.
The company held $356 million in cash and equivalents as of June 26, 2021.
EPS of $1.42 beat the analyst consensus of $0.79.
"Looking forward, we are confident in the growth opportunities for Versace, Jimmy Choo and Michael Kors as the world continues to recover from the impact of the global pandemic," said CEO John D. Idol.
As of June 26, 2021, Net inventory was $760 million, down 20% compared to the prior year. The remaining availability under the company's share repurchase authorization was $350 million.
Outlook: Capri raised FY22 sales outlook to $5.30 billion from the prior $5.15 billion, versus the consensus of $5.17 billion.
The company raised adjusted EPS guidance to $4.50 from $3.80-$3.90, versus the consensus of $3.93.
Price action: CPRI shares are trading higher by 10.7% at $55.38 on the last check Friday.

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