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Capri Holdings (CPRI) Gaining on Brand Strength, Growth Plans
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Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, 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 recently concluded quarter was a testament to the same. The company reported stronger-than-anticipated third-quarter fiscal 2022 results despite a challenging backdrop. Both the top and the bottom line improved meaningfully on a year-over-year basis. The company was encouraged by the performance of all three luxury brands. Consumers’ return to active social lifestyles has spurred demand for luxury apparel and accessories, and Capri Holdings has benefited from the same.
The company remains confident to position Versace as a leading luxury leather house, and expand accessories revenues to $1 billion over time and more than double footwear revenues. It plans to increase the store count to 300 and grow e-commerce sales to $500 million. It 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. In the third quarter, overall Signature represented 41% of the assortment compared to 35% last year. 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 revenues.
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Capri Holdings envisions revenues at approximately $5.56 billion and earnings to be $6.00 per share for fiscal 2022. Top-line projection assumes revenues of approximately $1.08 billion from Versace, $600 million from Jimmy Choo, and $3.88 billion from Michael Kors. For fiscal 2023, management guided revenues at approximately $6.1 billion and earnings to be $6.60 per share.
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. In the past six months, shares of this Zacks Rank #1 (Strong Buy) company have risen about 16% against the industry’s decline of 32.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Red Hot
Here are three more favorably ranked stocks — DICK'S Sporting Goods (DKS - Free Report) , Boot Barn Holdings (BOOT - Free Report) and Wolverine World Wide (WWW - Free Report) .
DICK'S Sporting Goods, which operates as a sporting goods retailer, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 104.2%, on average.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.
Boot Barn Holdings, the leading lifestyle retailer of western and work-related footwear, apparel and accessories, flaunts a Zacks Rank #1. In the last reported quarter, the company posted adjusted earnings of $2.23 per share.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period. BOOT has an expected EPS growth rate of 20% for three-five years.
Wolverine World Wide, one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel, carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.
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Capri Holdings (CPRI) Gaining on Brand Strength, Growth Plans
Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, 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 recently concluded quarter was a testament to the same. The company reported stronger-than-anticipated third-quarter fiscal 2022 results despite a challenging backdrop. Both the top and the bottom line improved meaningfully on a year-over-year basis. The company was encouraged by the performance of all three luxury brands. Consumers’ return to active social lifestyles has spurred demand for luxury apparel and accessories, and Capri Holdings has benefited from the same.
The company remains confident to position Versace as a leading luxury leather house, and expand accessories revenues to $1 billion over time and more than double footwear revenues. It plans to increase the store count to 300 and grow e-commerce sales to $500 million. It 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. In the third quarter, overall Signature represented 41% of the assortment compared to 35% last year. 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 revenues.
Capri Holdings envisions revenues at approximately $5.56 billion and earnings to be $6.00 per share for fiscal 2022. Top-line projection assumes revenues of approximately $1.08 billion from Versace, $600 million from Jimmy Choo, and $3.88 billion from Michael Kors. For fiscal 2023, management guided revenues at approximately $6.1 billion and earnings to be $6.60 per share.
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. In the past six months, shares of this Zacks Rank #1 (Strong Buy) company have risen about 16% against the industry’s decline of 32.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Red Hot
Here are three more favorably ranked stocks — DICK'S Sporting Goods (DKS - Free Report) , Boot Barn Holdings (BOOT - Free Report) and Wolverine World Wide (WWW - Free Report) .
DICK'S Sporting Goods, which operates as a sporting goods retailer, sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 104.2%, on average.
The Zacks Consensus Estimate for DICK'S Sporting Goods’ current financial year sales and EPS suggests growth of 27.8% and 151.6%, respectively, from the year-ago period. DKS has an expected EPS growth rate of 11.7% for three-five years.
Boot Barn Holdings, the leading lifestyle retailer of western and work-related footwear, apparel and accessories, flaunts a Zacks Rank #1. In the last reported quarter, the company posted adjusted earnings of $2.23 per share.
The Zacks Consensus Estimate for Boot Barn Holdings’ current financial year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period. BOOT has an expected EPS growth rate of 20% for three-five years.
Wolverine World Wide, one of the leading marketers and licensors of a branded casual, active lifestyle, work, outdoor sport, athletic, children's and uniform footwear and apparel, carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 18.3%, on average.
The Zacks Consensus Estimate for Wolverine World Wide’s current financial year sales and EPS suggests growth of 34.4% and 125.8%, respectively, from the year-ago period. WWW has an expected EPS growth rate of 10% for three-five years.