Capri Holdings Limited ( CPRI Quick Quote CPRI - Free Report) is likely to register year-over-year increases in its top and bottom lines when it releases third-quarter fiscal 2022 earnings on Feb 2 before the market opens. The Zacks Consensus Estimate for revenues is pegged at $1,466 million, indicating growth of 12.6% from the prior-year reported figure. The bottom line of this global fashion luxury group is anticipated to improve year over year. Although the Zacks Consensus Estimate for third-quarter earnings per share has been stable at $1.67 over the past 30 days, the figure suggests growth from $1.65 reported in the year-ago period. A glance at this London-based company’s performance in the trailing four quarters shows that it has delivered a significant earnings surprise, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 61.1%. Factors to Note
Consumers’ return to active social lifestyle has spurred demand for luxury apparel and accessories, and Capri Holdings is likely to have benefited from the same. The company has been deploying resources to expand offerings, upgrade distribution, create seamless omni-channel and digital capabilities, and deepen customer engagement. It has also been gaining from selling merchandise at full prices and select price increases at Jimmy Choo and Michael Kors.
Capri Holdings’ e-commerce business continues to witness sturdy performance, thanks to an increasing number of customers shopping online. The company has been investing in digital analytics and upgrading the e-commerce platform. E-commerce operations were strong in the last reported quarter, rising double digits. On its last earnings call, management guided third-quarter revenues to be roughly $1.46 billion and earnings to be $1.65 per share. Capri Holdings estimated revenues of approximately $235 million from Versace, $145 million from Jimmy Choo, and $1.08 billion from Michael Kors for the to-be-reported quarter. The company projected operating margin in the low-double-digit range for Versace, in the negative mid-single digit range for Jimmy Choo, and in the high 20% range for Michael Kors. While aforementioned factors instill optimism regarding the outcome of the results, we cannot ignore the impact of ongoing supply chain headwinds and increased transportation costs due to the pandemic. What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Capri Holdings this time around. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see . the complete list of today’s Zacks #1 Rank stocks here Capri Holdings currently has a Zacks Rank #2 but an Earnings ESP of 0.00%. Stocks With Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Macy's ( M Quick Quote M - Free Report) currently has an Earnings ESP of +7.71% and a Zacks Rank #1. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.97 suggests a substantial improvement from 80 cents reported in the year-ago quarter. Macy's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $8.44 billion, which indicates an improvement of 24.5% from the figure reported in the prior-year quarter. M has a trailing four-quarter earnings surprise of 313.5%, on average. Target ( TGT Quick Quote TGT - Free Report) currently has an Earnings ESP of +0.50% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.85 suggests growth of 6.7% from the year-ago quarter’s reported figure. Target’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $31.53 billion, indicating an increase of 11.3% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 19.7%, on average. Tapestry ( TPR Quick Quote TPR - Free Report) currently has an Earnings ESP of +0.85% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.18 suggests an increase of 2.6% from the year-ago reported number. Tapestry’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.99 billion, which suggests an increase of 17.8% from the prior-year quarter. TPR has a trailing four-quarter earnings surprise of 29%, on average. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.