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Capri Holdings (CPRI) Rides High on Strategies: Apt to Hold
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Capri Holdings Limited (CPRI - Free Report) is well poised for growth, thanks to its solid strategies. CPRI has been reinforcing its position in the luxury fashion space for a while, thanks to the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. 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.
Shares of this accessories and footwear dealer have increased 9.2% in the past three months against the industry’s 6.8% decline. A VGM Score of A coupled with an expected long-term earnings growth rate of 10.1% further speaks volumes for this presently Zacks Rank #3 (Hold) stock’s potential.
Let’s Take a Closer Look
With respect to brand-related efforts, Capri Holdings is designing innovative fashion products across its brand banners. While exploring growth opportunities in apparel is an important focus for CPRI, management will also emphasize boosting its accessories business, including leather goods and handbags. 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 CPRI.
Management remains confident about positioning Versace as a leading luxury leather house and expanding its accessories revenues to $1 billion over time. It also aims to more than double Capri Holdings’ 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.
Additionally, CPRI will continue leveraging its omni-channel capabilities to accelerate revenue growth and as deepen 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.
In the first quarter of fiscal 2023, Signature represented 50% of the assortment. Men’s business remains one of the fastest-growing categories at Michael Kors. It looks to double Michael Kors’ e-commerce revenues.
What’s More?
On its last earnings call, Capri Holdings estimated revenues of $5.85 billion for fiscal 2023, suggesting a 3% increase on a reported basis and approximately 10% on a constant-currency basis. It estimated earnings per share of $6.85, indicating an increase from the adjusted earnings of $6.21 reported in fiscal 2022. The fiscal 2023 top-line projection assumes revenues of approximately $1.175 billion from Versace (up about 8% on a reported basis), $650 million from Jimmy Choo (up approximately 6%) and $4.025 billion from Michael Kors (up approximately 6%).
Analysts also look optimistic about Capri Holdings. For fiscal 2023, the Zacks Consensus Estimate for CPRI’s sales and earnings per share (EPS) is currently pegged at $5.84 billion and $6.84 each, suggesting 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.
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.
Designer Brands, the leading footwear and accessories designer, presently has a Zacks Rank of 1.
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.
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 EPS suggests growth of 6.8% and 4.5%, respectively, from the year-ago corresponding figures.
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Capri Holdings (CPRI) Rides High on Strategies: Apt to Hold
Capri Holdings Limited (CPRI - Free Report) is well poised for growth, thanks to its solid strategies. CPRI has been reinforcing its position in the luxury fashion space for a while, thanks to the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories. 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.
Shares of this accessories and footwear dealer have increased 9.2% in the past three months against the industry’s 6.8% decline. A VGM Score of A coupled with an expected long-term earnings growth rate of 10.1% further speaks volumes for this presently Zacks Rank #3 (Hold) stock’s potential.
Let’s Take a Closer Look
With respect to brand-related efforts, Capri Holdings is designing innovative fashion products across its brand banners. While exploring growth opportunities in apparel is an important focus for CPRI, management will also emphasize boosting its accessories business, including leather goods and handbags. 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 CPRI.
Management remains confident about positioning Versace as a leading luxury leather house and expanding its accessories revenues to $1 billion over time. It also aims to more than double Capri Holdings’ 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.
Additionally, CPRI will continue leveraging its omni-channel capabilities to accelerate revenue growth and as deepen 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.
In the first quarter of fiscal 2023, Signature represented 50% of the assortment. Men’s business remains one of the fastest-growing categories at Michael Kors. It looks to double Michael Kors’ e-commerce revenues.
What’s More?
On its last earnings call, Capri Holdings estimated revenues of $5.85 billion for fiscal 2023, suggesting a 3% increase on a reported basis and approximately 10% on a constant-currency basis. It estimated earnings per share of $6.85, indicating an increase from the adjusted earnings of $6.21 reported in fiscal 2022. The fiscal 2023 top-line projection assumes revenues of approximately $1.175 billion from Versace (up about 8% on a reported basis), $650 million from Jimmy Choo (up approximately 6%) and $4.025 billion from Michael Kors (up approximately 6%).
Analysts also look optimistic about Capri Holdings. For fiscal 2023, the Zacks Consensus Estimate for CPRI’s sales and earnings per share (EPS) is currently pegged at $5.84 billion and $6.84 each, suggesting 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.
Key Picks in Retail
Some better-ranked stocks are Ulta Beauty (ULTA - Free Report) , Designer Brands (DBI - Free Report) and Buckle (BKE - 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.
Designer Brands, the leading footwear and accessories designer, presently has a Zacks Rank of 1.
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.
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 EPS suggests growth of 6.8% and 4.5%, respectively, from the year-ago corresponding figures.