NYSE$CPRI

Capri Holdings Ltd · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Revenue and earnings exceeded expectations, and the full year adjusted earnings per share outlook was raised.

Capri Holdings Limited reported strong second quarter fiscal 2022 results, with revenue increasing by 17% and adjusted earnings per share exceeding expectations. The company raised its full year adjusted earnings per share outlook to $5.30 and authorized a new $1 billion share repurchase program.

  • Revenue increased 17%, with better than anticipated results across all three luxury houses
  • Adjusted gross margin expanded 440 basis points versus prior year
  • Adjusted operating margin of 18.5%
  • Adjusted earnings per share of $1.53

Headline financials

Total Revenue

$1.3B

Previous: $1.11B+17.1%
EPS (adj)

$1.53

Previous: $0.90+70.0%
Gross margin

68.0%

Previous: 64.0%+6.3%
Operating margin

15.0%

Previous: 13.8%+8.7%
Capital Expenditures

-$48M

Previous: -$59M+18.6%
Free Cash Flow

$348M

Previous: $78M+346.2%
Net Income

$200M

Previous: $122M+63.9%
Operating Income

$195M

Previous: $153M+27.5%
Gross Profit

$884M

Previous: $710M+24.5%
Cash & Equivalents

$234M

Previous: $238M-1.7%
Total Assets

$7.49B

Previous: $7.8B-4.0%
Stock-Based Comp

$20M

Previous: $17M+17.6%

Revenue & EPS history

Capri · Revenue · Quarterly

$1.3B

Q2 2022+17.1%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Capri · $1.02B total across 2 segments · Q2 2022

  • Michael Kors
    $881M+11.1%
  • Jimmy Choo
    $137M+12.3%

Forward guidance

The Company expects total revenue of approximately $1.46 billion and diluted earnings per share of approximately $1.65 for the third quarter of fiscal year 2022.

Tailwinds

  • Total revenue of approximately $5.4 billion for fiscal year 2022
  • Operating margin of approximately 18% for fiscal year 2022
  • Net interest income of approximately $10 million for fiscal year 2022
  • Effective tax rate of approximately 17% for fiscal year 2022
  • Diluted earnings per share of approximately $5.30 for fiscal year 2022

Headwinds

  • Financial results could differ materially from the current outlook due to a number of external events which are not reflected in our guidance, including any significant additional store closures or new government restrictions that could further impact traffic and sales trends
  • Greater supply chain disruptions that could further extend inventory delays or increase transportation expenses
  • Versace operating margin in the low double digit range for Q3 2022
  • Jimmy Choo operating margin in the negative mid single digit range for Q3 2022
  • Michael Kors operating margin in the high 20% range for Q3 2022

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 Q2 2022

Historical avgQ2 2022

+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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