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Capri Holdings (CPRI) Building Strong Presence Across Spectrum
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Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, has been reinforcing its position in the luxury fashion space. The company looks to maximize the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
While exploring growth opportunities in apparel is crucial to the company, it is emphasizing on boosting its accessories business, including leather goods and handbags. It 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 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. It plans to increase the store count to 300 and grow its e-commerce sales to $500 million. The company remains confident of attaining revenues of at least $2 billion in the Versace brand over time.
The retailer aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple its e-commerce revenues and broaden the global retail footprint to 300 stores. The company is pursuing the goal of improving revenues at Jimmy Choo to $1 billion over time.
Image Source: Zacks Investment Research
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 of fiscal 2022, 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. The company plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues.
Wrapping Up
Capri Holdings has been strengthening its position in the luxury fashion space for some time now. It has been investing significantly in digital analytics and enriching the e-commerce platform.
This presently Zacks Rank #3 (Hold) company envisions revenues at $5.56 billion and earnings of $6.00 per share for fiscal 2022. The 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, both suggesting an increase of about 10% over fiscal 2022.
Shares of Capri Holdings have fallen 0.9% in the past six months. In the same time frame, the industry has declined 34.5%.
The Zacks Consensus Estimate for Nordstrom’s current financial year sales and EPS suggests growth of 5.6% and 200%, respectively, from the year-ago period. JWN has a trailing four-quarter earnings surprise of 13.9%, on average.
General merchandise retailer Target currently flaunts a Zacks Rank #1. 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.
Costco, which operates membership warehouses, carries a Zacks Rank of 2 (Buy) at present. COST has a trailing four-quarter earnings surprise of 13.3%, on average.
The Zacks Consensus Estimate for Costco’s current financial year sales and EPS suggests growth of 13.5% and 17.6%, respectively, from the corresponding year-ago period’s actuals. COST has an expected EPS growth rate of 9.1% for three-five years.
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Capri Holdings (CPRI) Building Strong Presence Across Spectrum
Capri Holdings Limited (CPRI - Free Report) , one of the widely recognized names in the apparel and footwear industry, has been reinforcing its position in the luxury fashion space. The company looks to maximize the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
While exploring growth opportunities in apparel is crucial to the company, it is emphasizing on boosting its accessories business, including leather goods and handbags. It 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 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. It plans to increase the store count to 300 and grow its e-commerce sales to $500 million. The company remains confident of attaining revenues of at least $2 billion in the Versace brand over time.
The retailer aims to increase the contribution from accessories to 30% of Jimmy Choo’s revenues, triple its e-commerce revenues and broaden the global retail footprint to 300 stores. The company is pursuing the goal of improving revenues at Jimmy Choo to $1 billion over time.
Image Source: Zacks Investment Research
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 of fiscal 2022, 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. The company plans to grow revenues from MKGO to $500 million and double Michael Kors’ e-commerce revenues.
Wrapping Up
Capri Holdings has been strengthening its position in the luxury fashion space for some time now. It has been investing significantly in digital analytics and enriching the e-commerce platform.
This presently Zacks Rank #3 (Hold) company envisions revenues at $5.56 billion and earnings of $6.00 per share for fiscal 2022. The 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, both suggesting an increase of about 10% over fiscal 2022.
Shares of Capri Holdings have fallen 0.9% in the past six months. In the same time frame, the industry has declined 34.5%.
3 Stocks Looking Red Hot
Here we highlight three top-ranked stocks, namely, Nordstrom (JWN - Free Report) , Target (TGT - Free Report) and Costco (COST - Free Report) .
Nordstrom, the fashion retailer, sports a Zacks Rank #1 (Strong Buy). JWN has an expected EPS growth rate of 6% for three-five years. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nordstrom’s current financial year sales and EPS suggests growth of 5.6% and 200%, respectively, from the year-ago period. JWN has a trailing four-quarter earnings surprise of 13.9%, on average.
General merchandise retailer Target currently flaunts a Zacks Rank #1. 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.
Costco, which operates membership warehouses, carries a Zacks Rank of 2 (Buy) at present. COST has a trailing four-quarter earnings surprise of 13.3%, on average.
The Zacks Consensus Estimate for Costco’s current financial year sales and EPS suggests growth of 13.5% and 17.6%, respectively, from the corresponding year-ago period’s actuals. COST has an expected EPS growth rate of 9.1% for three-five years.