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Capri Holdings (CPRI) Gains Market Share on Brand Strength
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Even as coronavirus-inflicted challenges persist, the Retail - Apparel And Shoes industry is steadily making its way out of the woods and is now set for a complete recovery in 2022. As the economy reopened, pandemic-led restrictions eased and outdoor movement gathered pace. Evidently, the apparel industry too blossomed. Sales at clothing & clothing accessories stores witnessed a surge as more people started venturing out and demand improved. Capri Holdings Limited’s (CPRI - Free Report) brand strength and growth plans helped gain market share.
CPRI has been deploying resources for a while to expand product offerings, upgrade the distribution infrastructure, create seamless omni-channel capabilities and deepen its engagement with customers. Capri Holdings continuously reinforces 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.
Capri Holdings is confident enough to cement Versace’s position as a leading luxury leather house and expand its accessories revenues to $1 billion over time as well as more than double its footwear revenues. CPRI plans to increase the store count to 300 and grow its e-commerce sales to $500 million. The retailer aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple its e-commerce revenues and solidify the global retail footprint to 300 stores.
At Michael Kors, Capri Holdings 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 with 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 time. CPRI plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues.
Image Source: Zacks Investment Research
This presently Zacks Rank #1 (Strong Buy) player envisions revenues at $5.56 billion and earnings of $6.00 per share for fiscal 2022. Top-line projection assumes revenues of $1.08 billion from Versace, $600 million from Jimmy Choo and $3.88 billion from Michael Kors. For fiscal 2023, management estimated revenues at $6.1 billion and earnings to be $6.60 per share.
Capri Holdings has been strengthening its position in the luxury fashion space for sometime now. CPRI has been investing significantly in digital analytics and enriching the e-commerce platform to date. Shares of CPRI have fallen 6.6% in the past six months, outperforming the industry’s decline of 41.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Red Hot
Here we highlight three other top-ranked stocks, namely, Target (TGT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
General merchandise retailer Target currently carries a Zacks Rank #2 (Buy). TGT has an expected EPS growth rate of 16.5% for three-five years.
The Zacks Consensus Estimate for Target’s current financial-year sales and EPS suggests growth of 3.5% and 6.7%, respectively, from the corresponding year-ago period’s levels. TGT has a trailing four-quarter earnings surprise of 21.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, carries a Zacks Rank of 2 at present. TSCO has an expected EPS growth rate of 9.8% for three-five years.
The Zacks Consensus Estimate for Tractor Supply Company’s current financial-year sales and EPS suggests growth of 8.2% and 9.2%, respectively, from the corresponding year-ago period’s actuals. TSCO has a trailing four-quarter earnings surprise of 22%, on average.
Sprouts Farmers offering fresh, natural and organic food products, currently carries a Zacks Rank of 2. SFM has an expected EPS growth rate of 7.3% for three-five years.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and EPS suggests growth of 4.7% and 4.8%, respectively, from the corresponding year-ago period’s readings. SFM has a trailing four-quarter earnings surprise of 17.9%, on average.
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Capri Holdings (CPRI) Gains Market Share on Brand Strength
Even as coronavirus-inflicted challenges persist, the Retail - Apparel And Shoes industry is steadily making its way out of the woods and is now set for a complete recovery in 2022. As the economy reopened, pandemic-led restrictions eased and outdoor movement gathered pace. Evidently, the apparel industry too blossomed. Sales at clothing & clothing accessories stores witnessed a surge as more people started venturing out and demand improved. Capri Holdings Limited’s (CPRI - Free Report) brand strength and growth plans helped gain market share.
CPRI has been deploying resources for a while to expand product offerings, upgrade the distribution infrastructure, create seamless omni-channel capabilities and deepen its engagement with customers. Capri Holdings continuously reinforces 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.
Capri Holdings is confident enough to cement Versace’s position as a leading luxury leather house and expand its accessories revenues to $1 billion over time as well as more than double its footwear revenues. CPRI plans to increase the store count to 300 and grow its e-commerce sales to $500 million. The retailer aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple its e-commerce revenues and solidify the global retail footprint to 300 stores.
At Michael Kors, Capri Holdings 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 with 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 time. CPRI plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues.
Image Source: Zacks Investment Research
This presently Zacks Rank #1 (Strong Buy) player envisions revenues at $5.56 billion and earnings of $6.00 per share for fiscal 2022. Top-line projection assumes revenues of $1.08 billion from Versace, $600 million from Jimmy Choo and $3.88 billion from Michael Kors. For fiscal 2023, management estimated revenues at $6.1 billion and earnings to be $6.60 per share.
Capri Holdings has been strengthening its position in the luxury fashion space for sometime now. CPRI has been investing significantly in digital analytics and enriching the e-commerce platform to date. Shares of CPRI have fallen 6.6% in the past six months, outperforming the industry’s decline of 41.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 More Stocks Looking Red Hot
Here we highlight three other top-ranked stocks, namely, Target (TGT - Free Report) , Tractor Supply Company (TSCO - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
General merchandise retailer Target currently carries a Zacks Rank #2 (Buy). TGT has an expected EPS growth rate of 16.5% for three-five years.
The Zacks Consensus Estimate for Target’s current financial-year sales and EPS suggests growth of 3.5% and 6.7%, respectively, from the corresponding year-ago period’s levels. TGT has a trailing four-quarter earnings surprise of 21.3%, on average.
Tractor Supply Company, a rural lifestyle retailer in the United States, carries a Zacks Rank of 2 at present. TSCO has an expected EPS growth rate of 9.8% for three-five years.
The Zacks Consensus Estimate for Tractor Supply Company’s current financial-year sales and EPS suggests growth of 8.2% and 9.2%, respectively, from the corresponding year-ago period’s actuals. TSCO has a trailing four-quarter earnings surprise of 22%, on average.
Sprouts Farmers offering fresh, natural and organic food products, currently carries a Zacks Rank of 2. SFM has an expected EPS growth rate of 7.3% for three-five years.
The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and EPS suggests growth of 4.7% and 4.8%, respectively, from the corresponding year-ago period’s readings. SFM has a trailing four-quarter earnings surprise of 17.9%, on average.