Capri Holdings Limited (CPRI) Tops Q3 EPS by 64c

Capri Holdings Limited (NYSE: CPRI) reported Q3 EPS of $1.65, $0.64 better than the analyst estimate of $1.01. Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.33 billion.

Third Quarter Fiscal 2021 Highlights

• Revenue decline of 17%, a sequential improvement relative to the second quarter
• E-commerce sales improved sequentially, increasing 65%
• Positive retail sales in Asia across all luxury houses, led by double digit growth in Mainland China
• Double-digit global retail sales growth at Versace
• Adjusted gross margin expansion of 520 basis points versus prior year
• Adjusted operating margin expansion of 290 basis points versus prior year
• Adjusted earnings per share of $1.65

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, "We are a year into the global pandemic that has profoundly impacted the entire world. Our thoughts and prayers remain with all those who have been affected. I am incredibly proud of our entire team and what Capri Holdings has been able to accomplish during this unprecedented time. Looking back over the last three quarters since the onset of COVID-19, we are encouraged by the performance of all our luxury houses, which illustrates the strength of our brands as well as the resilience and agility of our businesses."

Mr. Idol continued, "We were pleased with our third quarter results as revenue improved sequentially and exceeded our expectations. As we continued to execute on our strategic initiatives, earnings were meaningfully higher than anticipated driven by significant gross margin expansion. We also remain encouraged by the double digit increases in our customer databases as we continue to attract new consumers to each of our luxury houses."

Mr. Idol added, "As the world continues to emerge from this crisis, we are increasingly optimistic about the outlook for the fashion luxury industry and Capri Holdings. By fiscal 2023, we anticipate revenue and earnings per share will exceed pre-pandemic levels. We remain confident that our three luxury houses position Capri Holdings to deliver multiple years of revenue and earnings growth as well as increase shareholder value."

Mr. Idol concluded, “While the world is experiencing many difficulties, our values as an organization are more important than ever. To further our commitment to support diversity and inclusion, we are pleased to announce the creation of The Capri Holdings Foundation for the Advancement of Diversity in Fashion. We are donating $20 million to the foundation to foster and support programs designed to promote equality in the fashion industry, with a particular focus on underrepresented communities. We aspire for fashion to be open to all and are doing our part to create a more inclusive industry."

Fiscal Year 2021 Outlook

The company is not providing annual earnings guidance for fiscal year 2021 due to the lack of visibility surrounding the progression of the pandemic, macroeconomic fundamentals and tourism flows.

For earnings history and earnings-related data on Capri Holdings Limited (CPRI) click here.

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