NYSE$CPRI

Capri Holdings Ltd · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Achieved record second quarter earnings per share.

Capri Holdings Limited reported strong revenue growth and record earnings per share in the second quarter of fiscal year 2023. The results were driven by momentum across all three luxury houses: Versace, Jimmy Choo, and Michael Kors.

  • Revenue increased 8.6% on a reported basis and 17.5% in constant currency.
  • Adjusted operating margin was 19.8%.
  • Adjusted earnings per share reached $1.79.
  • The company authorized a new $1 billion share repurchase program.

Headline financials

Total Revenue

$1.41B

Previous: $1.3B+8.6%
EPS (adj)

$1.79

Previous: $1.53+17.0%
Gross margin

67.4%

Previous: 68.0%-0.9%
Adjusted operating margin

19.8%

No prior period
Jimmy Choo operating margin

5.6%

No prior period
Michael Kors operating margin

25.8%

No prior period
Capital Expenditures

-$86M

Previous: -$48M-79.2%
Free Cash Flow

-$47M

Previous: $348M-113.5%
Net Income

$224M

Previous: $200M+12.0%
Operating Income

$252M

Previous: $195M+29.2%
Gross Profit

$951M

Previous: $884M+7.6%
Cash & Equivalents

$215M

Previous: $234M-8.1%
Total Assets

$7.2B

Previous: $7.49B-3.9%
Stock-Based Comp

$16M

Previous: $20M-20.0%

Revenue & EPS history

Capri · Revenue · Quarterly

$1.41B

Q2 2023+8.6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Capri · $1.1B total across 2 segments · Q2 2023

  • Michael Kors
    $962M+9.2%
  • Jimmy Choo
    $142M+3.6%

Forward guidance

The company is taking a more cautious view with revenue outlook due to an increasingly uncertain macroeconomic environment, foreign currency headwinds and the ongoing impact of COVID related restrictions in China. At the same time, the company is pleased to maintain Capri’s earnings per share guidance for the year, reflecting higher gross margin expectations, diligent expense management and reduced share count as a result of our ongoing share repurchase program.

Tailwinds

  • Total revenue of approximately $5.7 billion.
  • Gross margin expansion of 50 basis points.
  • Operating margin of approximately 18.3%.
  • Diluted earnings per share of approximately $6.85.
  • Ending inventory to be below prior year

Headwinds

  • Uncertain macroeconomic environment.
  • Foreign currency headwinds.
  • Ongoing impact of COVID related restrictions in China.
  • Potential for significant additional store closures.
  • Greater supply chain disruptions.

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 2023

Historical avgQ2 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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