Capri Holdings (NYSE:CPRI) reported fiscal fourth quarter results that showed stronger-than-expected profitability but weaker-than-expected revenue, sending shares down more than 6% on Wednesday afternoon.
The company posted adjusted earnings per share of $0.22, more than double the $0.11 consensus estimate
Revenue totaled $796 million, below Wall Street expectations of $803.7 million and down 3.7% year-over-year, or down 7% on a constant currency basis. For fiscal 2027, Capri Holdings expects total revenue of approximately $3.525 billion and operating income of about $190 million. Capital expenditures are projected to be around $125 million, while diluted earnings per share are expected to come in at approximately $2.15. “We are building upon the improving trends resulting from the success of our strategic initiatives,” Capri CEO John Idol said. “In fiscal 2027 we expect to return to low single digit revenue growth and approximately 40% earnings per share growth.” Jefferies analysts described the quarter as mixed, noting that revenue came in slightly below expectations, driven primarily by Michael Kors, while EBIT and EPS beat consensus.
They noted that profit outperformance was supported in part by approximately $40 million in IEEPA tariff refunds, and cautioned that excluding this benefit, underlying EBIT appeared softer, though timing and offsetting factors may have played a role. Looking ahead, Jefferies highlighted financial year 2027 guidance that came in broadly in line on revenue but above expectations on EBIT and EPS, supported by an anticipated 200 basis point improvement in gross margin. The firm noted that the outlook also included moving items below the EBIT line, including interest income, tax rate assumptions, and share count benefits from buybacks.