Capri Holdings Limited (CPRI) Misses Q4 EPS by 3c, Revenues Beat

Capri Holdings Limited (NYSE: CPRI) reported Q4 EPS of $0.11, $0.03 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $1.2 billion versus the consensus estimate of $1.12 billion.

Fourth Quarter and Full Year Fiscal 2020 Highlights

• Fourth quarter revenue decline of 11.3%, full year revenue growth of 6.0%
• Fourth quarter adjusted operating margin of 8.3%, full year adjusted operating margin of 13.6%
• Fourth quarter adjusted earnings per share of $0.11, including tax valuation allowances of $(0.44)
• Full year adjusted earnings per share of $3.89, including tax valuation allowances of $(0.44)

John D. Idol, the Company’s Chairman and Chief Executive Officer, said, "These are unprecedented times as the COVID-19 pandemic has dramatically impacted the entire world. My thoughts and prayers go out to all those who have been affected by the virus. As we manage through this evolving situation, our first priority is to help protect the health and safety of our employees, customers and communities. I want to thank our teams around the globe for the hard work and dedication they demonstrate every day, particularly now as we reopen stores and begin to return to our offices across the globe."

Mr. Idol continued, “I would also like to express my heartfelt condolences to the individuals, families and communities affected by the unjust and tragic deaths of George Floyd and Rayshard Brooks as well as the countless victims that have come before them. The systemic discrimination that has led us to this point is deplorable and untenable. At Capri, we stand against racism, discrimination and violence of any kind. As an organization and as individuals, we have an opportunity to positively impact the future. Capri Holdings is committed to listening, learning and taking the necessary actions to support long-term positive change for the Black community. While we foster an inclusive environment where employees of diverse backgrounds are welcomed, valued and celebrated, there is more work that we can do to increase diversity at all levels inside our company. We are working on significant initiatives to create change within Capri Holdings."

Mr. Idol concluded, "Looking at fiscal 2020, we were pleased with the progress of our strategic initiatives across the company. Prior to the impact of COVID-19, our earnings per share outlook was largely on track with our expectations. While we expect fiscal 2021 to be significantly impacted by the effects of the virus, we are encouraged as we reopen our stores globally with initial revenue exceeding our expectations. Capri Holdings has a portfolio of three iconic, founder-led fashion luxury houses that inspire passion and excitement in customers who value design innovation and exceptional quality. Looking ahead, we plan to continue to execute on our growth initiatives. We remain confident in the long-term opportunities for each of our unique luxury brands and believe Capri Holdings is poised to resume its growth trajectory in fiscal 2022."

Fiscal Year 2021 Outlook

Due to the lack of visibility surrounding the pandemic, macroeconomic fundamentals and tourism, the impacts on our financial and operating results cannot reasonably be estimated at this time. Therefore, the company is not providing guidance for its fiscal year 2021.

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

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