We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Capri Holdings (CPRI) Rides High on Strategies: Apt to Hold
Read MoreHide Full Article
Capri Holdings Limited (CPRI - Free Report) appears a decent stock pick due to its robust business strategies. CPRI has been reinforcing its position in the luxury fashion space for a while now due to the potential of the Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. Meanwhile, management has been deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omnichannel capabilities and deepen engagement with customers.
Shares of this accessories and footwear dealer have increased 37.7% in the past six months compared with the industry’s 6.6% rise. A Value Score of A, coupled with an expected long-term earnings growth rate of 11.8%, speaks volumes for this Zacks Rank #3 (Hold) stock’s potential.
Additionally, analysts look optimistic about the stock. For fiscal 2023, the Zacks Consensus Estimate for Capri Holdings’ sales and earnings per share (EPS) is currently pegged at $5.71 billion and $6.87, suggesting growth of 1% and 10.6%, respectively, from the year-ago period’s corresponding figures.
For fiscal 2024, the consensus estimate for sales and EPS presently stands at $5.97 billion and $7.27, respectively. These indicate an increase of 4.6% and 5.8% each from the comparable previous fiscal year’s actuals.
Strategic Details
Capri Holdings is focused on designing innovative fashion products across brand banners. Apart from exploring growth opportunities in apparel, the company has been boosting its accessories business, including leather goods and handbags.
CPRI has also been leveraging omnichannel capabilities to accelerate revenue growth and deepen consumer engagement. Markedly, the company’s Versace brand expanded its license deal with EuroItalia for an additional period of 15 years. EuroItalia is a leading global fragrance and cosmetics company based in Italy.
Image Source: Zacks Investment Research
Meanwhile, Capri Holdings’ cost-containment efforts, focus on the e-commerce platform and accretive buyouts bode well. The company’s acquisitions of the Jimmy Choo and Versace brands have strengthened its position in the luxury fashion space. These brands, along with Michael Kors, form a perfect portfolio. Management remains confident about positioning Versace as a leading luxury leather house and expanding accessories revenues to $1 billion over time, as well as more than double footwear revenues.
At Michael Kors, management continues to increase Signature penetration across all product categories. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over time.
Capri Holdings also plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues. The company is on the path to improving revenues at Michael Kors to $5 billion over time and expects to double revenues in Asia.
Capri Holdings’ e-commerce business has been doing well. Management is investing significantly in digital analytics, expanding capabilities and upgrading the e-commerce platform. The company plans to drive retail and e-commerce to the full potential across all brands, Versace, Jimmy Choo and Michael Kors.
Key Picks in Retail
We have highlighted three better-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Urban Outfitters (URBN - Free Report) .
Tecnoglass manufactures and sells architectural glass and windows and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’ current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Urban Outfitters, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 3% and 27.9%, respectively, from the year-ago reported figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Capri Holdings (CPRI) Rides High on Strategies: Apt to Hold
Capri Holdings Limited (CPRI - Free Report) appears a decent stock pick due to its robust business strategies. CPRI has been reinforcing its position in the luxury fashion space for a while now due to the potential of the Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. Meanwhile, management has been deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omnichannel capabilities and deepen engagement with customers.
Shares of this accessories and footwear dealer have increased 37.7% in the past six months compared with the industry’s 6.6% rise. A Value Score of A, coupled with an expected long-term earnings growth rate of 11.8%, speaks volumes for this Zacks Rank #3 (Hold) stock’s potential.
Additionally, analysts look optimistic about the stock. For fiscal 2023, the Zacks Consensus Estimate for Capri Holdings’ sales and earnings per share (EPS) is currently pegged at $5.71 billion and $6.87, suggesting growth of 1% and 10.6%, respectively, from the year-ago period’s corresponding figures.
For fiscal 2024, the consensus estimate for sales and EPS presently stands at $5.97 billion and $7.27, respectively. These indicate an increase of 4.6% and 5.8% each from the comparable previous fiscal year’s actuals.
Strategic Details
Capri Holdings is focused on designing innovative fashion products across brand banners. Apart from exploring growth opportunities in apparel, the company has been boosting its accessories business, including leather goods and handbags.
CPRI has also been leveraging omnichannel capabilities to accelerate revenue growth and deepen consumer engagement. Markedly, the company’s Versace brand expanded its license deal with EuroItalia for an additional period of 15 years. EuroItalia is a leading global fragrance and cosmetics company based in Italy.
Image Source: Zacks Investment Research
Meanwhile, Capri Holdings’ cost-containment efforts, focus on the e-commerce platform and accretive buyouts bode well. The company’s acquisitions of the Jimmy Choo and Versace brands have strengthened its position in the luxury fashion space. These brands, along with Michael Kors, form a perfect portfolio. Management remains confident about positioning Versace as a leading luxury leather house and expanding accessories revenues to $1 billion over time, as well as more than double footwear revenues.
At Michael Kors, management continues to increase Signature penetration across all product categories. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over time.
Capri Holdings also plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues. The company is on the path to improving revenues at Michael Kors to $5 billion over time and expects to double revenues in Asia.
Capri Holdings’ e-commerce business has been doing well. Management is investing significantly in digital analytics, expanding capabilities and upgrading the e-commerce platform. The company plans to drive retail and e-commerce to the full potential across all brands, Versace, Jimmy Choo and Michael Kors.
Key Picks in Retail
We have highlighted three better-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Urban Outfitters (URBN - Free Report) .
Tecnoglass manufactures and sells architectural glass and windows and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests growth of 11.2% and 9%, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’ current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Urban Outfitters, a fashion retailer of apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests growth of 3% and 27.9%, respectively, from the year-ago reported figures.