NYSE$CPRI

Capri Holdings Ltd · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Capri achieved record revenue, gross margin, and EPS, driven by strong performance across all luxury houses.

Capri Holdings Limited reported a strong fourth quarter and full year fiscal 2022, achieving the highest revenue, gross margin, and earnings per share in the company's history. Total revenue increased by 24.6% to $1.492 billion, and adjusted earnings per share reached $1.02.

  • Revenue increased 24.6%, with better than anticipated results across all three luxury houses
  • Adjusted gross margin expanded 20 basis points versus prior year
  • Adjusted operating margin expansion of 230 basis points to 14.2%
  • Adjusted earnings per share of $1.02

Headline financials

Total Revenue

$1.49B

Previous: $1.2B+24.6%
EPS (adj)

$1.02

Previous: $0.38+168.4%
Gross margin

64.1%

No prior period
Operating margin

8.0%

No prior period
Adjusted operating margin

14.2%

Previous: 11.9%+19.3%
Capital Expenditures

$46M

Previous: $26M+76.9%
Free Cash Flow

-$55M

Previous: $53M-203.8%
Net Income

$81M

Previous: -$183M+144.3%
Operating Income

$119M

Previous: -$139M+185.6%
Gross Profit

$956M

Previous: $737M+29.7%
Cash & Equivalents

$169M

Previous: $232M-27.2%
Total Assets

$7.48B

Previous: $7.48B-0.0%
Stock-Based Comp

$16M

Previous: $18M-11.1%

Revenue & EPS history

Capri · Revenue · Quarterly

$1.49B

Q4 2022+24.6%vs Q4 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Capri · $1.18B total across 2 segments · Q4 2022

  • Michael Kors
    $1.02B+21.8%
  • Jimmy Choo
    $156M+25.8%

Forward guidance

Capri Holdings expects total revenue of approximately $5.95 billion for fiscal year 2023, an increase of approximately 5% versus prior year on a reported basis and approximately 10% in constant currency. Diluted earnings per share are expected to be approximately $6.85.

Tailwinds

  • Total revenue of approximately $5.95 billion, increasing approximately 5% versus prior year on a reported basis and approximately 10% in constant currency
  • Gross margin approximately flat to fiscal year 2022, reflecting benefits from strategic initiatives offset by higher transportation and input costs
  • Operating margin of approximately 18%
  • Net interest income of approximately $35 million
  • Effective tax rate of approximately 11%

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
  • Any greater supply chain disruptions that could further extend inventory delays or increase transportation expenses
  • Versace expects operating margin of approximately 16%
  • Jimmy Choo expects operating margin of approximately 5%
  • Michael Kors expects operating margin of approximately 24%

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 Q4 2022

Historical avgQ4 2022

+2.4%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+3.3%

Avg return

30 days after

58%

34 / 59 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 2026-1.2%-0.5%
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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro