Capri Holdings 3Q adj. profit tops Street, shares jump

LONDON — Luxury retailer Capri Holdings Ltd. reported a fiscal third-quarter profit dragged down by some costs, but its adjusted results easily beat Wall Street's view.

Shares surged 10 percent before the market open on Wednesday.

The London-based company, which recently changed its name from Michael Kors Holdings Ltd., earned $199.6 million, or $1.33 per share, for the period ended Dec. 29. A year earlier it earned $219.4 million, or $1.42 per share.

Removing one-time costs and restructuring costs, earnings were $1.76 per share. That's well above the $1.57 per share that analysts surveyed by Zacks Investment Research anticipated.

Revenue totaled $1.44 billion, shy of the $1.45 billion that Wall Street was looking for.

Retail revenue for the Michael Kors segment dipped 1 percent, with same-store sales down 2.4 percent. Jimmy Choo, which the company purchased in 2017, had revenue of $161.6 million.

Going forward, Capri — which recently completed its acquisition of Versace — foresees fourth-quarter earnings of 56 cents to 61 cents per share on revenue of approximately $1.33 billion. Analysts polled by FactSet expect earnings of 82 cents per share on revenue of $1.39 billion.

The company now expects fiscal 2019 earnings to be $4.90 to $4.95 per share, with revenue of about $5.22 billion. For fiscal 2020, it predicts earnings of about $4.95 per share on revenue of about $6.1 billion.

Wall Street is looking for 2019 earnings of $4.98 per share on revenue of $5.3 billion. For 2020, it's calling for earnings of $5 per share on revenue of $6.17 billion.

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Portions of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CPRI at https://www.zacks.com/ap/CPRI

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