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Capri revises up full-year profit forecast on Versace, Michael Kors brand strength

Capri Holdings Ltd (CPRI) on Wednesday revised up its full-year profit forecast, as it signaled strong demand for its Michael Kors handbags and Versace dresses.

Total revenue went up 24.6% year-on-year to $1.49 billion during the fourth quarter ended on April 2nd, while outstripping a consensus of analyst estimates of $1.41 billion.

Revenue at Capri’s largest brand, Michael Kors, surged 21.8% year-on-year to $1.02 billion during the fourth quarter, while revenue at the Versace brand rose 34% year-on-year to $315 million.

Excluding special items, Capri earned $1.02 per share during the latest quarter, which compares with market consensus of $0.82 per share.

The company now expects fiscal 2023 profit of $6.85 per share, an upward revision from $6.60 per share, as forecast previously.

On the other hand, Capri revised down its fiscal 2023 revenue forecast to $5.95 billion from a prior estimate of $6.1 billion, since China’s COVID-19 lockdown measures led to store closures.

The shares of Capri Holdings Ltd closed higher for a fifth consecutive trading session in New York on Wednesday. The stock went up 1.09% ($0.53) to $49.27, after touching an intraday high at $51.35. The latter has been a price level not seen since April 21st ($53.30).

The shares of Capri Holdings Ltd have retreated 24.09% so far in 2022, following a 54.55% gain in 2021.

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