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Here's Why Capri Holdings (CPRI) Marching Ahead of Industry
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Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, has exhibited a decent run on the bourses in the past one year. Thanks to its operational initiatives — strengthening of omni-channel solutions, expanding customer reach and focus on brand innovation — the stock has outpaced the Zacks Retail - Apparel And Shoes industry. In the said period, shares of this Zacks Rank #1 (Strong Buy) company have risen about 59.9% against the industry’s decline of 7.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Additionally, an uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimates for the current and next financial year have increased about 17.9% and 14% to $5.34 and $6.09, respectively, over the past 60 days. The company’s long-term earnings growth rate of 32.2% highlights its inherent strength.
Key Growth Drivers
Capri Holdings has constantly been deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omni-channel capabilities and deepen engagement with customers. The company has been reinforcing its position in the luxury fashion space, and looks to maximize the potentials of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
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The company remains confident to position Versace as a leading luxury leather house, and expand accessories revenues to $1 billion over time as well as more than double footwear revenues. It plans to increase the store count to 300 and grow e-commerce sales to $500 million. It also aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple e-commerce revenues and increase global retail footprint to 300 stores.
At Michael Kors, the company continues to increase signature penetration across all product categories with the goal to increase the same to 50% of the business. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over the time. The company plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce sales.
Wrapping Up
Certainly, Capri Holdings has been strengthening its position in the luxury fashion space. The company has been investing significantly in digital analytics and upgrading the e-commerce platform. Management envisions revenues to be approximately $5.4 billion and earnings to be $5.30 per share for fiscal 2022. Top-line projection assumes revenues of approximately $1.06 billion from Versace, $575 million from Jimmy Choo, and $3.765 billion from Michael Kors.
The Children's Place, a pure-play children’s specialty apparel retailer, carries a Zacks Rank #1. The company’s bottom line has outperformed the Zacks Consensus Estimate in the last reported quarter by a margin of 19.6%.
The Zacks Consensus Estimate for The Children's Place’s current financial year sales and EPS suggests growth of 27.4% and 464.9%, respectively, from the year-ago period.
Tapestry, which provides luxury accessories and branded lifestyle products, flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 29%, on average.
The Zacks Consensus Estimate for Tapestry’s current financial year sales and EPS suggests growth of 14.8% and 17.9%, respectively, from the year-ago period. TPR has an expected EPS growth rate of 12.3% for three-five years.
Boot Barn Holdings, the lifestyle retailer of western and work-related footwear, apparel and accessories, carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 35.3%, on average.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and earnings per share (EPS) suggests growth of 54.6% and 188%, respectively, from the year-ago period.
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Here's Why Capri Holdings (CPRI) Marching Ahead of Industry
Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, has exhibited a decent run on the bourses in the past one year. Thanks to its operational initiatives — strengthening of omni-channel solutions, expanding customer reach and focus on brand innovation — the stock has outpaced the Zacks Retail - Apparel And Shoes industry. In the said period, shares of this Zacks Rank #1 (Strong Buy) company have risen about 59.9% against the industry’s decline of 7.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Additionally, an uptrend in the Zacks Consensus Estimate echoes the same sentiment. The consensus estimates for the current and next financial year have increased about 17.9% and 14% to $5.34 and $6.09, respectively, over the past 60 days. The company’s long-term earnings growth rate of 32.2% highlights its inherent strength.
Key Growth Drivers
Capri Holdings has constantly been deploying resources to expand product offerings, upgrade distribution infrastructure, create seamless omni-channel capabilities and deepen engagement with customers. The company has been reinforcing its position in the luxury fashion space, and looks to maximize the potentials of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
The company remains confident to position Versace as a leading luxury leather house, and expand accessories revenues to $1 billion over time as well as more than double footwear revenues. It plans to increase the store count to 300 and grow e-commerce sales to $500 million. It also aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple e-commerce revenues and increase global retail footprint to 300 stores.
At Michael Kors, the company continues to increase signature penetration across all product categories with the goal to increase the same to 50% of the business. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over the time. The company plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce sales.
Wrapping Up
Certainly, Capri Holdings has been strengthening its position in the luxury fashion space. The company has been investing significantly in digital analytics and upgrading the e-commerce platform. Management envisions revenues to be approximately $5.4 billion and earnings to be $5.30 per share for fiscal 2022. Top-line projection assumes revenues of approximately $1.06 billion from Versace, $575 million from Jimmy Choo, and $3.765 billion from Michael Kors.
3 More Stocks Looking Red Hot
Here are three more favorably ranked stocks —The Children's Place (PLCE - Free Report) , Tapestry (TPR - Free Report) and Boot Barn Holdings (BOOT - Free Report) .
The Children's Place, a pure-play children’s specialty apparel retailer, carries a Zacks Rank #1. The company’s bottom line has outperformed the Zacks Consensus Estimate in the last reported quarter by a margin of 19.6%.
The Zacks Consensus Estimate for The Children's Place’s current financial year sales and EPS suggests growth of 27.4% and 464.9%, respectively, from the year-ago period.
Tapestry, which provides luxury accessories and branded lifestyle products, flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 29%, on average.
The Zacks Consensus Estimate for Tapestry’s current financial year sales and EPS suggests growth of 14.8% and 17.9%, respectively, from the year-ago period. TPR has an expected EPS growth rate of 12.3% for three-five years.
Boot Barn Holdings, the lifestyle retailer of western and work-related footwear, apparel and accessories, carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 35.3%, on average.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and earnings per share (EPS) suggests growth of 54.6% and 188%, respectively, from the year-ago period.