Capri Holdings Limited (NYSE: CPRI) reported Q3 EPS of $1.66, $0.07 better than the analyst estimate of $1.59. Revenue for the quarter came in at $1.57 billion versus the consensus estimate of $1.54 billion.

GUIDANCE:

Capri Holdings Limited sees Q4 2020 EPS of $0.68-$0.73, versus the consensus of $1.18. Capri Holdings Limited sees Q4 2020 revenue of $1.3 billion, versus the consensus of $1.46 billion.

• During the fourth quarter of fiscal 2020, there has been an outbreak of coronavirus in China which the Company expects will materially impact its financial results. As of February 5, 2020, approximately 150 of the Company’s 225 stores in mainland China are closed. Additionally, most of the stores that remain open are operating with reduced hours and experiencing significant declines in customer traffic. While this global health emergency is expected to be temporary, the duration and intensity of the disruption is uncertain, including potential broader impact outside of China if travel and tourist traffic is further restricted and there is a resulting decline in Chinese tourist spending in other regions. Given the dynamic nature of these circumstances, the Company currently expects the situation in China to reduce revenue by approximately $100 million and earnings per share by $0.40 to $0.45 for the fourth quarter and full year. This estimate could materially change if the severity of the situation worsens, including potential broader impact on our business outside the region if outbound travel and tourist traffic is further restricted out of China and into other countries and regions. In addition, given the lower than normal visibility, the Company will not be providing brand comparable store sales guidance ranges in the fourth quarter.

For Capri Holdings, the Company expects the following.

• Total revenue of approximately $5.65 billion
• Operating margin of approximately 13.7%
• Net interest expense in a range of $15 million to $20 million
• Weighted average diluted shares outstanding of approximately 152 million
• Effective tax rate of approximately 9.5%
• Diluted earnings per share of $4.45 to $4.50

Fourth Quarter Fiscal 2020 Outlook

For Capri Holdings, the Company expects the following.

• Total revenue of approximately $1.3 billion
• Operating margin of approximately 9.0%
• Net interest expense of approximately $0 million
• Weighted average diluted shares outstanding of approximately 152 million
• Effective tax rate of approximately 7%
• Diluted earnings per share of $0.68 to $0.73

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