Capri Holdings LimitedCPRI
Scheduled
Capri Holdings Limited 2027 Q1 Earnings Call
Review the key takeaways and the transcript of this earnings call.
PeriodQ1 2027
Key takeaways
- Capri Holdings Limited reported first quarter fiscal 2027 revenue of $769 million, down 3.5% year over year, with operating income increasing approximately 40% and earnings per share rising about 30% to $0.67.
- Michael Kors revenue decreased 7% year over year to $590 million, impacted by quality of sale initiatives, reduced promotional activity, third party sales, and off-price shipments, with retail sales down high single digits and wholesale revenue declining low single digits.
- Jimmy Choo revenue increased 10.5% to $179 million, with broad-based growth across channels, regions, and categories, including low double-digit increases in retail and wholesale sales.
- Gross margin improved 200 basis points to 65%, driven by higher full price sell-through and lower tariff rates, with Michael Kors gross margin up 280 basis points to 63.9% and Jimmy Choo gross margin down to 68.7% due to channel mix.
- Operating expenses decreased by $10 million due to cost savings initiatives, offsetting inflationary pressures, resulting in total operating income of $28 million and operating margin expansion to 3.6%.
- The company ended the quarter with $114 million in cash and $338 million in debt, reducing net debt to $224 million from approximately $1.5 billion last year, and repurchased $50 million of shares during the quarter.
- Inventory declined 20% year over year to $624 million, with a 25% decline at Michael Kors due to planned markdown inventory reductions and in-transit delays.
- First quarter results exceeded expectations for revenue, operating income, and earnings per share, driven by better than anticipated performance at both Michael Kors and Jimmy Choo.
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