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.

_____

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

People also read these

UK lawmakers urge social media companies to...

Aug 25, 2016

British lawmakers are demanding that social media giants do more to tackle sites that promote...

Global stocks lower, except for Tokyo, on Yellen...

Aug 29, 2016

Most global stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the...

Global stocks rise as investors weigh future of...

Aug 30, 2016

Global stock markets mostly rose on Tuesday as investors weighed the possibility and timing of...

Asian stock markets muted ahead of key US job...

Sep 2, 2016

Asian markets were listless Friday as investors awaited key U.S. job data that could influence the...

Japan raids Mitsubishi Motors over...

Sep 2, 2016

Japanese transport ministry officials raided the Tokyo headquarters of scandal-stricken Mitsubishi...

About Us

Frontal Report is an emerging leader in all forms of media. We aim to be the leading news brand for readers around the world.

Contact us: sales[at]frontalreport.com

Subscribe Now!