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Here's Why You Should Hold on to Capri Holdings (CPRI) Stock
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Capri Holdings Limited (CPRI - Free Report) appears in good shape on the back of its solid growth strategies. Management has been deploying resources for a while to expand the product offerings, upgrade distribution infrastructure, create seamless omnichannel capabilities and deepen its engagement with customers. CPRI also continues reinforcing its position in the luxury fashion space, thanks to the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
Analysts also look optimistic about this currently Zacks Rank #3 (Hold) company. For fiscal 2023, the Zacks Consensus Estimate for Five Below’s sales and earnings per share (EPS) is currently pegged at $5.84 billion and $6.84 each. These estimates suggest growth of 3.3% and 10.1%, respectively, from the year-ago period’s corresponding figures.
Also, for fiscal 2024, the consensus estimate for sales and EPS presently stands at $6.21 billion and $7.33, respectively, indicating an increase of 6.3% and 7.2% each from the comparable previous fiscal year’s actuals.
Let’s Analyze Further
Capri Holdings’ focus on the e-commerce platform and accretive buyouts is commendable. Its acquisitions of Jimmy Choo and Versace brands strengthened its position in the luxury fashion space. These brands along with the Michael Kors label make a perfect brand portfolio for Capri Holdings.
Management remains confident to position Versace 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. The Versace brand expanded its license deal with EuroItalia for an additional period of 15 years. EuroItalia is a leading global fragrance and cosmetics company based in Italy. At Michael Kors, CPRI continues to increase its Signature penetration in all product categories.
In the first quarter of fiscal 2023, overall Signature represented 50% of the assortment. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over time. Management looks to double Michael Kors’ e-commerce revenues.
Coming to Capri Holdings’ brand-related efforts, designing innovative fashion products across its brand banners is a key driver. While exploring growth opportunities in apparel is an important focus for CPRI, management will also emphasize on boosting its accessories business including leather goods and handbags.
Additionally, CPRI will continue leveraging its omni-channel capabilities to accelerate revenue growth as well as deepening consumer engagement through improved communications. Management has been significantly investing in digital analytics, expanding capabilities and uplifting the e-commerce platform for a while. Capri Holdings’ e-commerce business continues to witness a sturdy performance, thanks to the increasing number of customers shopping online.
Buoyed by such endeavors, shares of this accessories and footwear dealer have increased 6.9% in the past three months against the industry’s 5.6% decline. A VGM Score of A coupled with an expected long-term earnings growth rate of 10.1% further speaks volumes for the stock’s potential.
The Zacks Consensus Estimate for Ulta Beauty’s fiscal 2022 sales suggests growth of 13.7% from the corresponding year-ago level. ULTA has a trailing four-quarter earnings surprise of 32.8%, on average.
Buckle, a leading retailer of apparel, footwear and accessories, has a Zacks Rank #2 (Buy) at present. BKE has a trailing four-quarter earnings surprise of 12.7%, on average.
The Zacks Consensus Estimate for Buckle’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 6.8% and 4.5%, respectively, from the year-ago corresponding figures.
Designer Brands, the leading footwear and accessories designer, presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Designer Brands’ fiscal 2022 sales and EPS suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago levels. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.
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Here's Why You Should Hold on to Capri Holdings (CPRI) Stock
Capri Holdings Limited (CPRI - Free Report) appears in good shape on the back of its solid growth strategies. Management has been deploying resources for a while to expand the product offerings, upgrade distribution infrastructure, create seamless omnichannel capabilities and deepen its engagement with customers. CPRI also continues reinforcing its position in the luxury fashion space, thanks to the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
Analysts also look optimistic about this currently Zacks Rank #3 (Hold) company. For fiscal 2023, the Zacks Consensus Estimate for Five Below’s sales and earnings per share (EPS) is currently pegged at $5.84 billion and $6.84 each. These estimates suggest growth of 3.3% and 10.1%, respectively, from the year-ago period’s corresponding figures.
Also, for fiscal 2024, the consensus estimate for sales and EPS presently stands at $6.21 billion and $7.33, respectively, indicating an increase of 6.3% and 7.2% each from the comparable previous fiscal year’s actuals.
Let’s Analyze Further
Capri Holdings’ focus on the e-commerce platform and accretive buyouts is commendable. Its acquisitions of Jimmy Choo and Versace brands strengthened its position in the luxury fashion space. These brands along with the Michael Kors label make a perfect brand portfolio for Capri Holdings.
Management remains confident to position Versace 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. The Versace brand expanded its license deal with EuroItalia for an additional period of 15 years. EuroItalia is a leading global fragrance and cosmetics company based in Italy. At Michael Kors, CPRI continues to increase its Signature penetration in all product categories.
In the first quarter of fiscal 2023, overall Signature represented 50% of the assortment. Men’s business remains one of the fastest-growing categories at Michael Kors, and management intends to generate revenues of $500 million over time. Management looks to double Michael Kors’ e-commerce revenues.
Coming to Capri Holdings’ brand-related efforts, designing innovative fashion products across its brand banners is a key driver. While exploring growth opportunities in apparel is an important focus for CPRI, management will also emphasize on boosting its accessories business including leather goods and handbags.
Additionally, CPRI will continue leveraging its omni-channel capabilities to accelerate revenue growth as well as deepening consumer engagement through improved communications. Management has been significantly investing in digital analytics, expanding capabilities and uplifting the e-commerce platform for a while. Capri Holdings’ e-commerce business continues to witness a sturdy performance, thanks to the increasing number of customers shopping online.
Buoyed by such endeavors, shares of this accessories and footwear dealer have increased 6.9% in the past three months against the industry’s 5.6% decline. A VGM Score of A coupled with an expected long-term earnings growth rate of 10.1% further speaks volumes for the stock’s potential.
Key Picks in Retail
Some better-ranked stocks are Ulta Beauty (ULTA - Free Report) , Buckle (BKE - Free Report) and Designer Brands (DBI - Free Report) .
Ulta Beauty, the leading beauty retailer, presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ulta Beauty’s fiscal 2022 sales suggests growth of 13.7% from the corresponding year-ago level. ULTA has a trailing four-quarter earnings surprise of 32.8%, on average.
Buckle, a leading retailer of apparel, footwear and accessories, has a Zacks Rank #2 (Buy) at present. BKE has a trailing four-quarter earnings surprise of 12.7%, on average.
The Zacks Consensus Estimate for Buckle’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 6.8% and 4.5%, respectively, from the year-ago corresponding figures.
Designer Brands, the leading footwear and accessories designer, presently has a Zacks Rank of 2.
The Zacks Consensus Estimate for Designer Brands’ fiscal 2022 sales and EPS suggests growth of 6.9% and 23.5%, respectively, from the corresponding year-ago levels. DBI has a trailing four-quarter earnings surprise of 55.1%, on average.