Curious about Capri Holdings (CPRI) Q4 Performance? Explore Wall Street Estimates for Key Metrics

Analysts anticipate Capri Holdings (CPRI) will report a Q4 loss of $0.16 per share, a 138.1% year-over-year decline, with revenues expected to fall 19.6% to $982.81 million. Revenue declines are projected across Versace (-25.9%), Michael Kors (-19.7%), and all geographic regions, with Americas revenue expected to decrease by 18.5% and Asia by 24.9%. Despite these projected declines, CPRI shares have outperformed the S&P 500 in the past month, rising 13% versus the S&P's 8.2% gain.

Analysis

Wall Street analysts project Capri Holdings (CPRI) will report a significant downturn in its upcoming Q4 results, with an anticipated quarterly loss of $0.16 per share, marking a 138.1% year-over-year decline. Expected revenues of $982.81 million also represent a substantial 19.6% decrease compared to the prior-year quarter. These negative expectations are broad-based, with Versace revenue forecast to fall by 25.9% to $195.54 million and Michael Kors revenue by 19.7% to $660.03 million. Furthermore, Michael Kors' income from operations is estimated at a sharply lower $36.42 million, compared to $116 million in the same quarter last year. Geographically, revenue declines are anticipated across all major regions: Americas by 18.5% to $527.03 million, Asia by 24.9% to $168.26 million, and EMEA by 17% to $292.33 million. Despite this bleak outlook, which has seen the consensus EPS estimate remain unchanged over the past 30 days, CPRI shares have gained 13% in the past month, outperforming the S&P 500's 8.2% rise. The stock currently holds a Zacks Rank #3 (Hold), suggesting it is expected to perform in line with the market in the near term, adding a layer of complexity to the investment thesis.

Key Decisions for Investors

• Investors should exercise caution due to the significant disconnect between the severely negative Q4 earnings and revenue forecasts and the stock's recent 13% appreciation.
• Closely monitor the upcoming earnings release, paying particular attention to actual performance against these low estimates for revenue and profitability across all brands and geographic segments, as well as management's forward guidance.
• Given the Zacks Rank #3 (Hold) and the substantial projected declines, evaluate whether the recent stock rally adequately prices in a potential earnings surprise or if the shares are exposed to downside risk should results meet or fall short of the current bearish expectations.