NYSE$CPRI

Capri Holdings Ltd · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Achieved record first quarter revenue and adjusted earnings per share.

Capri Holdings Limited reported strong first quarter fiscal 2023 results, with revenue increasing 8.5% to $1.36 billion and adjusted earnings per share reaching $1.50, exceeding expectations due to strong momentum across all three luxury houses.

  • Revenue increased 8.5% on a reported basis and 15.2% in constant currency, with better than anticipated results across all three luxury houses
  • Adjusted operating margin of 18.5%
  • Adjusted earnings per share of $1.50
  • Company repurchased approximately 6.1 million ordinary shares for approximately $300 million

Headline financials

Total Revenue

$1.36B

Previous: $1.25B+8.5%
EPS (adj)

$1.50

Previous: $1.42+5.6%
Gross margin

66.3%

No prior period
Operating margin

17.0%

No prior period
Capital Expenditures

-$36M

Previous: -$23M-56.5%
Free Cash Flow

$101M

Previous: $181M-44.2%
Net Income

$201M

Previous: $219M-8.2%
Operating Income

$231M

Previous: $258M-10.5%
Gross Profit

$901M

Previous: $856M+5.3%
Cash & Equivalents

$221M

Previous: $356M-37.9%
Total Assets

$7.61B

Previous: $7.62B-0.2%
Stock-Based Comp

$28M

Previous: $36M-22.2%

Revenue & EPS history

Capri · Revenue · Quarterly

$1.36B

Q1 2023+8.5%vs Q1 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Capri · $1.09B total across 2 segments · Q1 2023

  • Michael Kors
    $913M+4.8%
  • Jimmy Choo
    $172M+21.1%

Forward guidance

The Company expects total revenue of approximately $1.4 billion and diluted earnings per share of approximately $1.55 for the second quarter of fiscal year 2023.

Tailwinds

  • Total revenue of approximately $5.85 billion for fiscal year 2023
  • Gross margin approximately flat to fiscal 2022
  • Operating margin of approximately 18% for fiscal year 2023
  • Diluted earnings per share of approximately $6.85 for fiscal year 2023
  • Total revenue of approximately $1.4 billion for the second quarter of fiscal year 2023

Headwinds

  • Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance
  • Any significant additional store closures or new government restrictions that could further impact traffic and sales trends
  • Any greater supply chain disruptions that could further extend inventory delays or increase transportation expenses
  • Operating margin of approximately 17% for the second quarter of fiscal year 2023
  • Ending inventory to be below prior year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.4%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+3.3%

Avg return

30 days after

59%

34 / 58 earnings

Positive

+53.5%

Q1 2024

Best reaction

-25.5%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-13.4%-12.8%-19.2%
Q2 2026-0.0%+6.7%+33.5%
Q1 2026+14.3%+6.7%+16.9%
Q4 2025+3.1%-0.9%+0.2%
Q3 2025-10.1%-8.5%-13.1%
Q2 2025-6.7%-11.9%+1.3%
Q1 2025-4.2%-6.2%+9.1%
Q4 2024-1.2%+0.5%-3.4%
Q3 2024+1.3%+1.8%+1.2%
Q2 2024-2.3%-1.5%+0.5%
Q1 2024+53.5%+50.0%+52.5%
Q4 2023-13.0%-9.8%-9.3%
Q3 2023-25.5%-22.8%-35.4%
Q2 2023+4.5%+10.9%+21.5%
Q1 2023-1.8%+1.2%-5.3%
Q4 2022+0.6%+4.8%-15.4%
Q3 2022+4.9%+5.4%-11.3%
Q2 2022+19.9%+16.6%+10.8%
Q1 2022+14.2%+16.6%+16.7%
Q4 2021+6.6%+7.1%+6.3%
Q3 2021+6.6%+9.0%+11.6%
Q2 2021+7.2%+20.8%+68.1%
Q1 2021+7.2%+20.1%+22.2%
Q4 2020-2.6%+0.5%-4.2%
Q3 2020+1.9%-2.2%-25.5%
Q2 2020+4.5%+6.7%+11.9%
Q1 2020+3.5%-5.5%-11.1%
Q4 2019-13.1%-12.5%-10.8%
Q3 2019+8.2%+4.5%+0.1%
Q2 2019-12.8%-16.9%-29.5%
Q1 2019+10.3%+8.9%+10.3%
Q4 2018-15.9%-11.2%-2.4%
Q3 2018-8.3%-7.0%-6.2%
Q2 2018+14.7%+14.9%+25.7%
Q1 2018+23.0%+20.0%+13.8%
Q4 2017-8.8%-4.9%-0.1%
Q3 2017-8.3%-7.0%-11.7%
Q2 2017-1.0%-6.5%-1.6%
Q1 2017-2.0%-0.3%-4.7%
Q4 2016+11.2%+16.1%+17.2%
Q3 2016+27.9%
Q2 2016+10.6%
Q1 2016+11.0%
Q4 2015-24.4%
Q3 2015+0.9%
Q2 2015-7.2%
Q1 2015-3.3%
Q4 2014-3.6%
Q3 2014+19.1%
Q2 2014+6.3%
Q1 2014+2.4%
Q4 2013+6.0%
Q3 2013+7.6%
Q2 2013-4.9%
Q1 2013+16.6%
Q4 2012+1.7%
Q4 2011+1.7%
Q4 2010+1.7%
Q1 2012

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