Earnings Summary Capri Holdings Limited Q1 FY2025
Intellectia.AI Updated: 1970-01-01
Earnings Summary: Capri Holdings Limited Q1 FY2025
Capri Holdings Limited (CPRI) reported its financial results for the first quarter ended June 29, 2024.
Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimates (Q1 FY2025) |
|---|---|---|---|---|
| Total Revenue | $1.067 billion | $1.229 billion | -13.2% | $1.160 billion |
| Earnings Per Share (EPS) | $(0.12) | $0.38 | N/A | $0.59 |
Interpretation: * Capri's total revenue for Q1 FY2025 was $1.067 billion, a decrease of 13.2% year-over-year (YoY), missing the Wall Street consensus estimate of $1.160 billion. * Capri reported an EPS of $(0.12), significantly below the consensus expectation of $0.59.
Segment Revenue Performance
| Segment | Q1 FY2025 Revenue | Q1 FY2024 Revenue | YoY Change |
|---|---|---|---|
| Versace | $219 million | $259 million | -15.4% |
| Jimmy Choo | $173 million | $183 million | -5.5% |
| Michael Kors | $675 million | $787 million | -14.2% |
| Total | $1.067 billion | $1.229 billion | -13.2% |
Interpretation: * Versace revenue decreased by 15.4% YoY, primarily attributable to lower revenues in EMEA and the Americas, particularly in the wholesale business. * Jimmy Choo's revenue dropped by 5.5% YoY, mainly due to decreased demand in Asia. * Michael Kors revenue declined by 14.2% YoY because of softening demand globally for fashion luxury goods.
Operational Data
No additional operational data was mentioned in the earnings report.
Management Commentary
Results in key segments were interpreted as challenging due to continuous macroeconomic headwinds globally affecting demand across all luxury brands under Capri Holdings. The decrease in full-price sell-throughs and an unfavorable foreign currency impact contributed to the performance decline.
Dividends and Share Repurchase Program
Capri did not announce any dividends. Regarding the share repurchase program, the company did not conduct any repurchases during the quarter, primarily due to the pending merger with Tapestry, Inc., which limits share repurchase activities under the merger terms.
Forward Guidance
Capri has not provided any forward guidance due to the unpredictability of current market conditions and ongoing regulatory approval processes related to the pending merger with Tapestry, Inc.
Stock Price Movement
After the earnings release, Capri Holdings Limited's stock price experienced a slight increase of 0.69%.
In conclusion, Capri Holdings Limited reported a challenging Q1 FY2025 with declines in revenue and EPS missing Wall Street expectations largely influenced by macroeconomic headwinds and currency impacts. The ongoing merger with Tapestry, Inc. denotes a significant focus and potential future restructuring for the company.
