- Capri Holdings Ltd CPRI reported a third-quarter FY23 sales decline of 6% year-on-year to $1.51 billion, missing the consensus of $1.53 billion.
- Versace revenue decreased 0.8% Y/Y to $249 million, Jimmy Choo revenue fell 5.6% to $168 million, and Michael Kors revenue contracted 7.2% to $1.095 billion.
- Gross profit was $1.01 billion, and gross margin expanded 140 basis points to 66.5%. Adjusted gross margin expanded 120 basis points to 66.3%.
- Operating margin was 15.6%, and the operating income for the quarter amounted to $236 million.
- Operating expenses increased 7.3% Y/Y to $769 million.
- The company held $281 million in cash and equivalents as of Dec. 31, 2022.
- Adjusted EPS of $1.84 missed the analyst consensus of $2.22.
- Net inventory as of Dec. 31, 2022, was $1.188 billion, a 21% increase Y/Y. The company continues to expect inventory levels to be below the prior year by the end of the fourth quarter.
- In Q3, the company repurchased approximately 5.7 million ordinary shares for $300 million in open market transactions.
- Outlook: Capri lowered its FY23 sales outlook from $5.7 billion to $5.56 billion versus the $5.72 billion estimate. It also lowered FY23 EPS outlook from $6.85 to $6.10 against the consensus of $6.87.
- Capri lowered Q4 revenue guidance from $1.40 billion to $1.275 billion versus the $1.41 billion estimate. It also lowered Q4 EPS guidance from $1.35 to $0.90 - $0.95 versus the $1.39 estimate.
- For FY24, the company sees revenue of $5.80 billion versus the $6.03 billion estimate. It expects FY24 EPS of $6.40 versus the Street view of $7.24.
- Price Action: CPRI shares are trading lower by 28.47% at $47.47 on the last check Wednesday.
- Photo Via Company
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